CO_1030_768_HONG_KONG_DEFENCE_CONTRIBUTIONS_1957_1958 — Page 27

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Brief for the Secretary of State

The Hong Kong Defence Contribution

There are two issues involved:

(1) The size of the contribution

(2) The payment of the contribution for 1957/58

(1) The size of the contribution

their/contribution

In February 1957 the Defence Committee invited the Colonial Office

annual to examine the possibility of Hong Kong increasing their/contr:

of £1 million towards the cost of the garrison. The Governor's views

have been that the amount of the contribution should be discussed in

reduction in the thes

the light of the size of the garrison and the absence of assistance

from Her Majesty's Government towards the refugee problem; this has

been strongly supported to other departments by the Colonial Office.

Discussion has centered on the following points:

The question whether additional wirds shower be located temporarily in Hong Kong and y so, who shined by for them is the subject the recent schoug]

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(a) whether the long term garrison of six major units should be

(the R. A. Mgiment) temporarily increased by one or two further major units/an

(b) whether Hong Kong should continue to pay a contribution of

£1,000,000 plus the excess cost of maintaining any additional

and above units in the Colony over/the cost of maintaining them in the

United Kingdom if the eelony does not receive any assistance

from Her Majesty's Government or the United Nations towards

resettling the refugees.

The Governor's latest proposals, which are supported by the

Colonial Office, are that the contribution should be fixed for the

next five years at £1 million plus half the additional cost of main-

taining two additional units for the same period (subject to a pro rata reduction if the garrison is further reduced during that period)

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the Navy on the closure of the dockyard. It is felt that these proposals

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