TNAG-0480-FCO40-545-Strength-of-garrison-in-Hong-Kong-1974 — Page 43

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Mr Stuart, HKIOD

DEFENCE REVIEW: HONG KONG

1.

In discussion this morning, the Governor said that he might at some stage ask for my observations on the problems posed for Hong Kong in meeting the additional defence contribution which it will be called upon to make.

2. Papers on this subject have not come my way. But given the Governor's request, perhaps I should take steps to familiarise myself with the background. To this end, I wonder if you could let me have a sight of the relevant papers.

Those which did strike me as relevant are those showing:-

3.

i.

ii.

iii.

What has been proposed by HMG;

What has been the response so far of the Hong Kong Government, ie. how they are deploying their case on the difficulties posed by HMG proposals; Advance information on the shape of the forthcoming Hong Kong Budget; any other information bearing on the way in which the Hong Kong economic situation has changed for the worse.

Incidentally, I said to the Governor that not the least of the problems as seen from this end was that Hong Kong had so successfully projected an image of a booming, adaptable and vigorous economy that there was inevitably a credibility gap. Many Ministers and I suspect most officials still had that image in mind.

ян

D G Holland

19 December 1974

Ro

Dir wildes, Paris

I have discussed with Dr Holland, but could

you get him out the papers.

Thints to

ACS

19/12

to sime

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