CO_1030_768_HONG_KONG_DEFENCE_CONTRIBUTIONS_1957_1958 — Page 47

3. As Johnston said in his letter, this business

raises a mixture of political and financial

problems of some difficulty. It cannot be denied

that there is a risk that public opinion in Hong

Kong will exert pressure for the diversion to

other purposes of the defence contribution, but

it remains our earnest intention and the Governor's

to avoid that unhappy result by playing this

along with some care.

During his visit to London

the Governor made it clear that for local

political reasons he would have to be able to

demonstrate to informed public opinion in the

Colony, and especially to the unofficial members

of Legislative Council and Finance Committee,

that something practical was being done by the

outside world, and particularly by H.M. Government,

to help Hong Kong in solving the problem of the Chinese refugees mentioned in Johnston's letter.

A debate on this subject is due to take place in

the United Nations General Assembly in the next

few weeks; some assistance might come out of that,

but it is not thought probable. The probably

would

unfavourable result of that debate will be

tolerated by the unofficials in Hong Kong if they

felt

feel that H.M. Government are doing something to

Hey Kong

ththey

Lelk

help; but, if they feel that they are getting no

help or consideration from either the U.K. or

would almost certainly

the United Nations, they are expected to become

critical and unmanageable. The most likely

then

consequences would/be that the Finance Committee,

*in which there is an unofficial majority, would

insist on recommending to the Legislative Council

that the current defence contribution of £1 M a year

should be diverted to squatter resettlement in

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/the

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