CO_1030_768_HONG_KONG_DEFENCE_CONTRIBUTIONS_1957_1958 — Page 66

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Page 66

forthcoming from international sources.

It is against this background that we have

had to consider the request for an increase in the

which also comes

defence contribution, and this at a time when it

has been proposed that all naval and R.A.F.

establishments should be withdrawn from the

in addition t

being

Colony and the garrison run dom to the minimum

necessary for internal security purposes.

Governor as you know has suggested that his

11

The

defence contribution should be reduced as a

measure of assistance in the refugee problem and

I enclose a copy of his despatch.

LEA

The Secretary of State instructed that in the

light of the Governor's despatch and his great

Copy of (3)

disquiet at the effect in the Colony of the defence

Some aspects by which are stil bay prowed with the Minister befense, reductions, the suggestion of an increased defence

contribution should not be referred to the Governor

at the present time an isolation

Should

but be

considered in the context of the Governor's counter

the implications of

proposal and of the problems raised by what must

necessarily be our attitude to U.N. assistance

in the matter of refugees.

This business raises a mixture of political

and financial problems whose difficulties you will

I think recognise, and on which we have not yet

reached any conclusions ourselves. We very much

need to discuss their implications with the people

in Hong Kong, and as the Colonial Secretary is

arriving here in a week's time, and the Financial

Secretary a little later we would like to defer

making any proposals to you until we have had a

chance of going over the problems with them.

I hope this will be acceptable to you and to

Page 66

/Charlton

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