TNAG-0543-FCO40-638-Strength-of-garrison-in-Hong-Kong-1975 — Page 44

Parliament and the people will be quick to make the obvious

comparisons between your flat tax rate of 15% and our progressive rate

starting at 35%, your contribution to defence of less than a 1%

of GNP and ours of 5%, and to draw hostile conclusions if Hong Kong

is thought, rightly or wrongly, to be seeking to drive an unnecessarily

hard bargain. HMG's commitment to Hong Kong must ultimately rest.

on the goodwill and consent of the British Parliament and public. Opt.

9.

I hope I have made our position clear to you, with the sort

of plain speaking that is accepted among friends. And I hope that

nothing that comes out of our discussions will do anything to impair

that friendship or the excellent relationship which I know exists

between the Government, the Garrison and the population.

6

SEONGHU

}