PHER CAT/A
FM HONG KONG 010538Z
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JUP COPY
TO ROUTINE F.CO. TELEGRAM NUMBER 225 OF 1 APRIL 1971.
YOUR TELEGRAM NO. 236 TO ME.
LAST
REF.
REF.
(3)
48
IFFENCE CONTRIBUTION.
RECEIVED IN REGISTRY No.51 -5071
HILIL 10
THE TEXT OF THE MESSAGE IN YOUR TELEGRAM UNDER REFERENCE WAS
CONVEYED VERBATIM ON RECEIPT; WITH AN APPROPRIATE PREAMBLE AND
CONCLUDING WITH RE-ITERATION OF MY OFFER TO MEET UNOFFICIAL MEMBERS
WHENEVER THEY WISHED.
LAST TUESDAY (38 MARCH), AFTER THE EXECUTIVE COUNCIL MEETING THAT MORNING, I WAS TOLD YOUR MESSAGE WAS UNDER CONSIDERATION
AND THAT A REPLY IS BEING PREPARED. I AGAIN OFFERED TO MEET
UNOFFICIAL, MEMBERS WHENEVER THEY WISHED.
2 I HAVE NOT YET HAD AN OPPORTUNITY THEREFORE TO PRESENT THE
FURTHER POINTS IN YOUR TELEGRAM NO. 235, AND IN ANY CASE I AM IN
SOME DIFFICULTY OVER SOME OF THEM. PARAGRAPHS 4, 7, 8, 12 AND
13 CAN BE USED, WITH WHAT PERSUASIVE EFFECT I CANNOT SAY,
BUT THE FOLLOWING PARAGRAPHS MAY DRAW THE RESPONSES INDICATED:-
(A) PARA. 3. I UNDERSTAND THE FIGURE FOR OFFICIAL DEBT HAS NOW
BEEN SUBSTANTIALLY REDUCED. A FIGURE OF POUNDS 683 MILLION WAS
ANNOUNCED BY THE CHANCELLOR IN HIS BUDGET SPEECH AND THIS
IS LIKELY TO BE POINTED OUT SEMICOLON
INCREASED
(B) PARA. 5. THE G N P PER HEAD IS ESTIMATED TO HAVE
FROM US DOLLARS 540 IM 1966 TO US DOLLARS 792 IN 1973, AN INCREASE
OF 30 PER CENT. THIS IS NOT LIKELY TO BE PERSUASIVE IF USED IN
ITSELF TO JUSTIFY AN INCREASE OF 78 PER CENT IN THE CONTRIBUTION
SEMICOLON WHILE THE ARGUMENT FROM THE U.K. AND SINGAPORE IS LIKELY
TO BE ANSWERED BY THE ARGUMENTS THAT THE HIGHER A COUNTRY'S
G N PER HEAD THE LESS THE REAL BURDEN OF DEVOTING A PARTICULAR PROPORTION TO DEFENCE SEMICOLON AND THAT SINGAFCRE IS NOW /INDEPENDENT,
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