TNAG-0308-FCO40-344-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 111

SECRET

URGENT

4421

internal

minute

of mine

巫

Dear Gwynn,

RECEIVED IN

BANK OF ENGLAND

REGISTRY No. 51| LONDON,

23 MAR 1971

HKK10/9

EC2R 8AH.

10th March 1971.

Hong Kong Defence Contribution

You asked for brief comments on the draft reply to the memorandum prepared by the Unofficial members of the Executive Council in Hong Kong on this subject. I agree with the views expressed at the F.C.O. meeting described in Brack's note of the 5th March that the draft reply should be made more trenchant.

Paragraph 9 refers to Hong Kong's sterling balances; these are certainly large, but they can hardly be described as a "contribution". I think that our reply on this point should stress that the advantages of the financial and commercial relations between the U.K. and Hong Kong are by no means one-sided. I noe that our reply does not at present cover the further point made by the Unofficials concerning the use of Hong Kong airport and landing rights, and some reference to this will no doubt be necessary.

The last sentence of paragraph 6 of the draft reply compares the proposed total five-year contribution (£42.5 in.) tɔ the colony's revised budget surplus for 1970/71 (£38 min.). A more valid estimate of the colony's capacity to pay might be the increase in G.N.P. and per capita income over the past few years.

Yours sincerely,

Putinner

(R.H.Turner)

J.P.L.Gwynn, Esq.

Mr Laird (Hong Kong Dept 7co).

I was mistaken whe

afferom that

I suggested this

further advice

was expected

This for

be helpful for you.

from the Bank of England.

arrived,

į

Brock

11-3-21