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in recent
ни Year has achins
burgen
Implan
chee
9
Officials have considered carefully whether this is
acceptable or whether Hong Kong should be pressed to pay more.
They have examined both the economic case for suggesting a
political implications of so doing.
higher contribution and the
Consideration of the offer:
years;
(1) Isonomic Factora
10 The Colony's economy has made very rapid strides in recent
its GNP has increased greatly and its reveme is buoyant.
Nevertheless Hong Kong needs to keep on increasing its exports
by about 15% per annum if industry is to expand sufficiently to provide opportunities for its school leavers in the labour market
and so avert the risk of further disturbances (it is estimated
that 50% of the total population of the Colony is under 21 years
of age). Such expansion depends on a continuation of the present
and the opinion is strongly held locally that this ei turns high level of outside investment in the Colony which inhibits any
increase of taxation to meet increased defence costs. Though reserves are high (to a large extent because the Government's
ability to spend has not kept pace with the upsurge of economic
the activity since the end of the disturbances in 1967), Hot Colony
the
Hong
has very large commitments towards such future projects as a
public assistance scheme, expansion of secondary and technical
education, housing for squatters and others, the crossharbour tumpoh extension of Kai Tak airport, de-salinisation plants,
und reservoirs to help meet its growing needs for water;
possibly
and
trumportation system (Undugrand sailway).
14 Thus in considering what is a fair contribution to its own defence, account needs be taken of the possible dangers to the
continued expansion of Hong Kong's industry during the seventies
und consequently to its revenues and reserves. In particular
Britain's entry into the EEC may well have deleterious effects
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