TNAG-0544-FCO40-639-Strength-of-garrison-in-Hong-Kong-1975 — Page 59

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SECRET

Preliminary

Members'

Views.

DEFENCE COSTS

Meeting of Executive Council and Unofficial Members of Legislative Council with the Right Honourable William Rodgers, MP, Minister of State for Defence held in Room 150, Colonial Secretariat, at 11. 30 a. m. on Tues- day 28th October, 1975

HE spoke on the status of the negotiations. He said that the negotiations with the Minister would be conducted by himself but when a conclusion had been reached, the constit- utional position was that the Governor must act on the advice of the Executive Council and, if a financial commitment was involved, this must be referred to and accepted by the Finance Committee of the Legislative Council. This meeting had been arranged so that HMG's views, on the defence contribution to be made by Hong Kong could be put simultaneously to the Executive Council and the Finance Committee of Legislative Council

2.

Address by Minister of State for Defence.

The text of the Minister's address is at Annex A.

3. (a) Sir Y. K. Kan welcomed the sentiments expressed in the Minister's address that the negotiations would be as between friends. He welcomed also the statement of HMG's firm comm- itment to the well being and security of the people of Hong Kong. He said that the value of the garrison to Hong Kong was apprecia- ted and it was for this reason that a contribution had been made in past years.

But there was a limit to the ability of Hong Kong's economy to pay for the cost of defence. In view of Hong Kong's status as a dependent territory it was the responsibility of the U. K. to maintain the security of Hong Kong. If Hong Kong was to pay a very large proportion of defence costs then the U, K. would be failing in its prime duty.

The U. K. 's economic difficulties were appreciated but the state of the economy of Hong Kong should also be kept in mind. At present Hong Kong was going through a difficult period which could worsen over the next two to three years. If Hong Kong was now asked to pay a contribution many times the size of the present one, which must be at the expense of social services, considerable difficulties would arise.

SECRET

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