TNAG-0309-FCO40-345-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 80

#NOTHING TO BE WRITTEN IN THIS MARGIN

W(B)L 51-7406

SECRET

12. The above arguments undoubtedly have

substance but there are opposing arguments of

equal weight:

(a)

(b)

Acceptance by Hong Kong of the

Governor's proposals would mean an

increase of 50 per cent over the

previous Hong Kong contribution.

The realities of the situation are

such that we are unlikely to obtain

a contribution of more than

£7.5 million per annum unless such a

contribution is imposed and the

consequences of such a course could

be very serious indeed. In

addition to the danger of provoking

disorders in the Colony (and the

Governor could expect little or no

public support on such an issue)1⁄2 it

would undoubtedly embitter relations

between Hong Kong and Her Majesty's

Government for a long time to come

(and those relations are already

under some strain) and would

benefit no one but the local

Communists who would be quick to

make the maximum propaganda use

of the situation that would arise.

RECOMMENDATION.

13. The view of the department is that,

subject to the following condition, the

Governor's proposals represent the best terms

on which we might hope to reach a settlement

with Hong Kong without having to impose a

contribution on the Colony. In order to

safeguard the interests of Her Majesty's

Government as far as possible it is considered

S

7 SECRET

/that