TNAG-0308-FCO40-344-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 93

NOTHING TO BE WRITTEN IN THIS MARGIN

W(B)L 51-7406

SECRET

5.

The garrison in Hong Kong is there for the

defence of the Colony and to assist in the

maintenance of law and order.

for financial and

Its presence is

of direct economic benefit to the Colony both

by reason of the confidence it engenders in the

eyes of overseas trading partners and investors

and by virtue of the local spending that it

generates. Its maintenance involves HMG in

very considerable annual expenditure which

during the next few years will be at least

£17 million, even if allowance is made for a

contribution of £8.5 million from the Colony.

This represents a form of direct assistance to

Hong Kong of a far higher order than that

given to any other territory of comparable size

dependent or independent.

6. With reference to paragraph 8 of your

Memorandum I have been informed that no

record can be traced of any such undertaking.

However the fact that HMG were unable to help

with the extension of Kai Tak airport should

certainly not be taken as an indication of a

lack of interest on their part in the well-bein Cg of the people of Hong Kong. That this is far

from being the case was shown in the assistance

rendered by the garrison in dealing with the

disturbances in 1967. The truth is that the

calls upon HMG are such that they can only be

met on a system of priorities based on need,

and, as you will appreciate, Hong Kong cannot

rank high in such a system. It is incorrect

to say that HMG do not expect reimbursement

for sums expended on aid contributions. More

than half of HMG's overseas economic aid takes

the forms of loans not grants.

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SECRET

7.