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The presence of the Garrison in Hong
increased spending power Kong is of direct economic benefit to the
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Colony both by reason of the confidence that
it engenders in the eyes of overseas trading
partners and investors and by virtue of the
local spending that it generates.
The latter
is particularly true in view of the
substantial proportion of the contribution
which would be spent on capital works and which
would ultimately be of direct and lasting
benefit to Hong Kong.
5. It is true that HMG spends large sums in
defence and aid contributions elsewhere.
HMG.
recipients of this assistance however are
totally unable to make any reimbursement to
The United Kingdom tax payer, who has
to provide the funds from which this
assistance is paid, has many calls upon him
and he has to shoulder one of the highest tax
burdens in the world.. However there is a
limit to what he can carry. It is therefore
not unreasonable to expect that where, as in
the case of Hong Kong, a territory is in a
position to contribute towards the cost of its
own defence it should do so on an equitable
basis. The Garrison in Hong Kong is there f
solely f the internal and external defence
of the Colony and any expenditure thereby
incurred is in the interests of Hong Kong.
16. No record can be traced (despite every
effort to do so) of any undertaking in 1966
by the Ministers concerned that every
endeavour would be made, in consideration of an
increased contribution, to assist the Colony
financially in some other way. However, the
fact that such financial assistance has not
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