File No. FED. 382/400/01.
Mr.. Ashton. Y!.....
Mr. Hughes
Mr..
Hulland...
Mr.. Melville...
4/10
Sir
464
........
Permt. U.S. of S.
Parly. U.S. of S.
перебо
Minister of State
Secretary of State
Your Reference. DM. 147/326/01, ...
Autous
DRAFT LETTER FOR MR. MGIVILLE'S SIGNATURE.
Page 39
20.
-7 OCT D. 7
TOP SECRET
Date October, 1957..
COL. W. RUSSELL-EDMUNDS,
TREASURY.
(20)
(17)
(15)
we cannot undertake that the
X
Your letter of the 20th September, 1957, to
I have been
lie Hennings, which crossed one of the same date from Ashten to
Charlton in the War Office, about the Defence contribution of
the Hongkong Government for the financial year 1957/58.
I can assure Jon Heat
2. We have again looked into this most carefully. Certainly
ому
we have no intention of trying to side-step the measures,
givers at the Defence Committee Meeting on 23rd July which you
because of
quote. Nevertheless, the serious political difficulties in
to Charlton HongKong remain, as set out in Ashton's latter under reference
ssay
>
already known to you from Johnston's letter of 21st
Hause we be
to change August which you mention. We remain of the opinion that the
well
before matter cannot be brought to a satisfactory conclusion until
a decision has been taken about the two units over and above
indead
the long-term garrison and on the whole Defence provision for Hongkong,which will again be reviewed in the light of the
recent visit of the Minister of Defence to that colony, Wo
shall, of course, let you end the War Office know as soon as
any progress seems possibler imminent.
FURTHER ACTION
Copy with Comps. to
3.
I am sending a copy of this letter to Charlton.
T.A.G. Charlton (War Office]
of wheds be
mentioned the need
to get this
settled soon and Do Bege Doddye would
(Er Melville)
Malville did, boven, have
telk
an
Page 39
wifoural pop talk with hand in
Colquicl Sceul, befon be refumed this week to Has Kong had in the cours
looks up 985) 1431/72 1MP 5/57 ATES.
30
768
3
Tel. No.: WHItehall 1234. Ext..
Page 40Reference FED 418/403/
(16)
Treasury
02
Reference DM 147/326/01...
Dear John,
KEA..
TOP SECRET
TREASURY CHAMBER age 40 of 85.
GREAT GEORGE STREET
LONDON, S.W.1
20 September, 1957
23/24 FED 418/403/02
Charlton wrote to Jack Johnston on the 3rd September about
20
Hong Kong's defence contribution for the current year. In his letter, Charlton said that the Accountant General, Hong Kong, had advised that no payment can be made in 1957/58.
We find the action of the Accountant General irreconcilable with what was said by the Governor when he attended the meeting of the Defence Committee on the 23rd July. The record - D. (57) Fifth Meeting states:-
"In discussion it was stated that the cost of maintaining the six major units of Hong Kong would be about £3 million a year, towards which the Hong Kong Government were prepared to continue their present contribution of £1 million."
While it was said that the Hong Kong Government were not prepared to increase their present financial contribution to cover the additional cost arising from the extra cost of stationing two artillery units in Hong Kong instead of the United Kingdom, there was no qualification whatsoever about the £1 million defence contribution. From the quotation given, there can be no doubt as to the position of the £1 million defence contribution. It speaks of continuing the present contribution as long as six major units are present, if you like, which is the case, leaving aside that the two artillery units are also now there and this can only mean that payment of the £1 million will be made this year.
FED
418/403/0201 (Copy (15))
Sk
In his letter to me of the 21st August, Jack Johnston deployed fully the political aspect of the Hong Kong refugees and the level
the garrison in the matter of the Defence Contribution. He also stated that it was generally agreed that no case could be put forward at present for a direct financial contribution from H.M. G. on a strict basis of need. In the matter of the Hong Kong refugees, the Treasury have actively helped to get a suitable brief for the United Kingdom representative to speak from in the General Assembly. I feel we have gone to considerable lengths to provide the desiderata mentioned in paragraph 5 of Jack Johnston's letter in the matter of refugees. I see paragraph 6 of Jack Johnston's letter as primarily concerned in the maintenance of the defence contribution; as he puts it, "enable him (the Governor) to maintain the defence contribution at its present level".
In all this, we see the statement at the Defence Committee meeting of the 23rd July as the ruling and operative basis for the current Defence Contribution. We hope therefore, that steps will be taken to make the payment to the War Office, shortly.
I am sending a copy of this letter to Charlton at the War Office.
Yours sincerely,
f
1:
J. D. Hennings, Esq.,
Colonial Office,
The Church House,
Great Smith Street,
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