TNAG-0308-FCO40-344-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 140

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2. THE DIS PRESS RELEASE DESCRIBED THE NEW ARRANGEMENTS AS

UCTE A DELIBERATE CONTRIBUTION TOWARDS. THE CONTINUEI STABILITY OF THE POUND, AS WELL AS A CONTRIBUTION TOWARDS DEFENCE COSTS UNQUOTE. IN A SPEECH IN THE LEGISLATIVE COUNCIL ON 30 MARCH 1967

THE COLONIAL SECRETARY SAID THAT THE FINAL SUM AGREED TO HAD BEEN

QUOTE CFFERED TO BRITAIN AS A GIFT IN RECOGNITION OF HER VERY REAL

ECONOMIC DIFFICULTIES. UNQUOTE.

3. THE PERILGUS FINANCIAL POSITION OF THE UK AT THAT TIME WAS

THEREFORE A PARAMOUNT CONSIDERATION AMONG THE VARICUS FACTORS

HHICH HAD BEEN TAKEN INTO ACCOUNT. IN PARA. 2 OF THE MEMORANDUM

OF UNDERSTANDING DATED DECEMBER 1946 IT WAS CLEARLY STATED

QUOTE IN RECOGNITION OF THE UNITED KINGDOM'S BALANCE OF PAYMENT DIFFICULTIES, IT WAS AGREED THAT, FOR THE FOUR FINANCIAL YEARS COMMENCING WITH 1967/68, HONG KONG WOULD MAKE AN ANNUAL DEFENCE CONTRIZUTION OF POUNDS ONE A HALF MILLION PLUS A SPECIAL ADDITIONAL CONTRIBUTION OF THREE AND A HALF MILLION PER ANDY UNQUOTE. PARA. 5 CF THE MEMORANDUM RECORDS THAT THE HONG KONG UNOFFICIAL REPRESENTATIVES TOOK NOTE OF THE FACT THAT,

IN THE EVENT OF INCREASES IN WACES BECOMING DESIRABLE FOR LOCALLY ELLISTED FERSONNEL AND LOCALLY ENGAGED CIVILIANS, IT MIGHT BEC ME NECESSARY TO CONSIDER VARIATIONS IN THE ARRANGEMENTS.

4. FROM THE MEMORANDUM OF UNDERSTANDING, THE BASIC CONTRIBUTION WOULD APPEAR TO BE POUNDS CHE A HALF MILLION AND NOT FIVE MILLION

PER ANNUN, WHEN THE MEMORANDUM WAS DRAWN UP IN 1964 HMG'S CASE

FUR AN INCREASE WAS BASED ON THE NEED FOR ASSISTANCE IN OVERCOMING HER THEN ACUTE BALANCE OF PAYMENT PROBLEMS. THIS STATE

OF AFFAIRS DOES NOT EXIST AT THE PRESENT TIME.

PART 11. ARGUMENTS AGAINST AN INCREASE.

5 THE BRITISH COVERNMENT'S CONTENTION THAT COLONIAL GOVERNMENTS

ARE ENTIRELY RESPONSIBLE FOR ALL ASPECTS OF THEIR OWN INTERNAL

SECURITY HAS NEVER BEEN ACCEPTED BY THE UNOFFICIALS. NEITHER

HAS HONG KONG'S CONTRIBUTION IN THE PAST IN FACT SEEN SASED UPON

SUCH TREMISES. HONG KONG'S OTHER COMMITMENTS HAVE ALWAYS BEEN

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