CO_1030_768_HONG_KONG_DEFENCE_CONTRIBUTIONS_1957_1958 — Page 62

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present evidence, Hong Kong is financially able to meet the cost of the housing and welfare needs of the refugees and make a defence contribution of at least £1 million. On basis of need, there is no case for giving Hong Kong any help either by way of defence contribution or by direct assistance for refugees. I hope you will get this accepted in your forthcoming talks. If the alternative is to try to get some international help for Hong Kong with her refugees, then we should give full consideration to this.

Yours.

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24 God a

W. Russell Edmunds

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FID.382/1100/01

FOR

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3rd June, 1957.

Thank you for your letter of the 24th May about the defence contribution from long Kong. I am sorry you have not heard from us before now about the exalination of a possible increase which our Ministers vere invited to make by the Defence Comittee, but the problem is rather complicated,

and perhaps I could briefly say whore it stands at the moment.

The Goverment of Hong Kong have for some time been representing that they should not be left to carw from their our resources the burden of the three-quarters of a million refugees from Cæmunist China who havo cac into Hong Kong and who cannot be exported out of the Colony. They have been entertaining hoses that come international responsibility will be accepted for the refugees and have been pressing us to take a lead in this direction in the U.".

In fact, of course, any load we take would involve U.K. contributions to any international help that might be forthcoming, which would be directly contrary to Uk. policy in regard to U.N. refugeo work, and it is therefore unlikely that any holp will be forthcoming from interna- tional sources.

It is against this background that we have had to consider the request for an increase in the defence contribution, which also comes at a time when it has been proposed that all naval and R.A.F. establishments should be withdrawn from the Colony in addition to the garrison being mm dom to the minimu nccessary for internal security purposes. The Governor as you know has suggested that his defence contribution should be reduced as a measure of assistance in the refugee problem Pugt 13 of 830so a cory of his despatch.