TNAG-0309-FCO40-345-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 41

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SECRET

(113)

Mr Wilford

Mr Logan

The Private Secretary

Agreed. H.R...

HONG KONG DEFENCE CONTRIBUTION

1. The Secretary of State may wish to make use of the

following arguments in support of the recommendation in

paragraph 8 of the attached memorandum for DOPC.

(a) We must make every effort to reach a settlement of

this problem without recourse to the reserved powers.

(b) The imposition of a contribution by using the reserved

powers (whether this were done through the official

majority in the Legislative Council or by Order in

Council) could have far reaching implications and

in the long run could cost HMG more dearly than

would acceptance of a reduced defence contribution.

(c) We should be guided by the man on the spot. The

Governor considers he would have a good chance of

persuading a majority of the Unofficial Members of

Executive Council to accept the proposals in Annex I.

But he also considers that those proposals represent

the maximum contribution which stands any hope of

acceptance.

(a) Even if the Governor's proposals are accepted by

Executive Council it does not follow that they will

be accepted by Legislative Council. Only one member

of Executive Council is also a member of Legislative

Council and he is known to be opposed in principle

to the payment of any defence contribution at all.

SECRET

/(e)