TNAG-0309-FCO40-345-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 132

PRIORITY

CYPHER CAT/A

FM HONG KONG 029600Z

SECRET

SECRET

TOP COPY

93)

TO PRIORITY F.C.0. TELEGRAM NO. 368 OF 2ND JUNE 1971.

MY TELEGRAM NO. 367 TO YOU.

DEFENCE CONTRIBUTION.

LAST

REF

92)

NE

REF.

FOLLOWING IS TEXT OF UNOFFICIAL MEMBERS REPLY, BEGINS :-

''THE UNOFFICIAL MEMBERS OF THE EXECUTIVE COUNCIL HAVE ASKED ME

TO THANK YOU FOR YOUR LETTER OF 25 MAY 1971 ON THE SUBJECT OF THE

DEFENCE CONTRIBUTION, AND TO REPLY AS FOLLOWS,

2. THE UNOFFICIALS REGARD MANY OF THE ARGUMENTS PUT FORWARD BY

THE SECRETARY OF STATE AS UNACCEPTABLE.

3. THEY NOTE THAT THE SECRETARY OF STATE HAS NOT COMMENTED AT ALL

ON TWO SPECIFIC MATTERS. THE FIRST OF THESE CONCERNS THE HONG KONG

AIRPORT, SEE PARAGRAPHS 8 AND 9 OF THEIR MEMORANDUM OF 27 FEBRUARY

1971. THE SECOND CONCERNS THE TARIFF SYSTEM WHICH IS TO REPLACE

THE U.K. QUOTA SYSTEM FROM 1 JANUARY 1972, AND AS THE RESULT OF

WHICH HMG WILL OBTAIN £4 TO £5 MILLION PER ANNUM FROM HONG KONG'S

COTTON SHIPMENTS TO THE U.K.

4. NEVERTHELESS, THE MAJORITY OF THE UNOFFICIAL MEMBERS (ONE DISSENTING, AND ONE BEING AT PRESENT OUT OF THE COLONY), ARE

PREPARED TO RECOMMEND THE MAKING OF A VOLUNTARY TOKEN CONTRI-

BUTION. THE RECOMMENDATION, WHICH IS MADE AFTER CAREFUL CONS I D-

ERATION OF ALL THE CIRCUMSTANCES, AND REPRESENTS IN THE VIEW OF

THE UNOFFICIALS THE MAXIMUM WHICH HONG KONG CAN AFFORD IN ACCORD-

ANCE WITH PARAGRAPH 14 OF THEIR MEMORANDUM, IS £7. MILLION A

YEAR FOR EACH OF THE NEXT 7 YEARS, MAKING A TOTAL OF £49 MILLION

OVER THE PERIOD.

15.

SECRET

RECOVED IN REGISTRY No.51

- 3 JUN 1971

AXX10/9