TNAG-0543-FCO40-638-Strength-of-garrison-in-Hong-Kong-1975 — Page 34

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HONG KONG DEFENCE COSTS NEGOTIATIONS OCTOBER 1975

FCO COMMENTS ON THE DRAFT OPENING STATEMENT BY THE MINISTER OF STATE CIRCULATED WITH MR WARD'S MINUTE OF 21 OCTOBER

Paragraph 1

later on.

Paragraph 2

Paragraph 3

Delete the second and third sentences, which are covered

Amend to read as follows:

"I want to confirm at the outset that HMG's commitment to the integrity of Hong Kong and its interest in the security and well-being of its inhabitants remains unchanged. We are conscious that a garrison adequate in terms of the tasks placed upon it is an important manifestation of HMG's commitment. It is both an assurance of internal security and an indication to the outside world of our continuing interest. In past years your own contribution to the cost of the garrison has represented only a small part of the total cost involved. Moreover, owing to inflation and the relative movement of currencies, the contribution you undertook to make under the previous agreement in 1971 has declined in value from just under 30% of the total cost to about 17% at the present time.

#1

Amend to read as follows:

"You may rightly point out that HMG must bear equal responsibility for the level of contribution agreed upon in 1971 and that no-one could have foreseen the impact of worldwide inflation; and you may be ready to redress the imbalance occurring since 1971. But in HMG's view that would not be a sufficient step. We do not think it is appropriate that Hong Kong's defence contribution should continue to represent such a small part of the total cost. Hong Kong is unique

Hong Kong is unique among our remaining dependent territories. It is a large and economically advanced community, comparable in its resources to many independent states which have to bear the whole cost of their defence. Indeed, Hong Kong's wealth exceeds that of many independent states. We recognise the special factors apply to Heng Kong. The maintenance of political and economic confidence within the Colony both require British participation in the costs and composition of the forces required for security. But the time has now come for our contribution to be the minimum compatible with these political objectives and for Hong Kong to assume the major burden of the cost of its defence. HMG has decided that the British contribution should not exceed 25% of the total cost.

"

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