CO_1030_768_HONG_KONG_DEFENCE_CONTRIBUTIONS_1957_1958 — Page 34

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5.

If the Unofficials at the confidential discussion agreed then the vote for the money would be included with a number of other items and would slide through Legislative Council without any debate.

6.

I have however been considering ways in which the se proposals for an increased contribution from Hong Kong might be made less unpalatable to Unofficial Members. One possibi- lity which you may feel merits serious consideration concerns part of the land occupied by the Navy in the dockyard area which is I understand still regarded by the War Department as War Department land. Although on the closure of the dock- yard you would expect this land to be surrendered on vacation by the service department concerned and that the most the War Department could claim would be an appropriate entry in the Military Lands Account, I can foresee the possibility of prolonged argument over the terms on which it should be surrendered and with the lengthy negotiations over the Murray Barracks area in mind Unofficial Members might feel that a quick and favourable solution of this issue would counter- balance a limited increase in the defence contribution, even though the garrison has been reduced. In short, the proposal I suggest is that, without prejudice to any of the principles involved, the War Department should relinquish any claims it might otherwise have put forward in respect of any of the land to be vacated by the Navy on closure of the dockyard (including any rights which it might be claimed had been inherited by the Admiralty through exchanges of land in the past) and that the Hong Kong Government for its part would maintain a defence contribution of one million pounds for the next five years plus half the additional cost of maintaining the two additional units for the same period, subject to a pro rata reduction in the payments if during the period the garrison were further reduced. An arrangement of this kind could, I think, have a practical appeal to Unofficial Members. (There is a small strip of land in this area still occupied by the Army for stores and workshops but I would not see undue difficulty in including this area in the scheme on the basis of this Government being responsible for reprovision- ing these buildings elsewhere by mutual agreement.)

7.

Your paragraph 2. The requirements to my mind a re the forces necessary to enable the military to discharge the tasks laid upon them in the spheres of external defence, aid to the police in maintaining internal security and in the last resort covering DIGIT. Even with the two additional units under discussion I consider the forces will fall well short of

requirements.

(Copies sent to Foreign Office for repetition

to Commissioner General.)

Distribution:

H.504

Mr. Melville

Mr. Carstairs

Mr.

Vile Mr. Hughes

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Mr. W. I.J. Wallace Mr. N.D. Watson

Mr. Campbell

1.Com Affleù noz wo

The Rate was (re/.) of. Russell Gummis (tig),

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TOP SECRET

Page:

f85

› I age 55 UI 85

OUTWARD TELEGRAM

FROM THE SECRETARY OF STATE FOR THE COLONIES

177