CO_968_583_DEFENCE_OF_HONG_KONG_1957_1959 — Page 135

TOP SECRET No.482

(257)

Your telegram No.498.

Finance Committee's Reaction.

There were of course somewhat bitter reference to H.M.G.'s failure to make any financial contribution towards solution of problems directly resulting from the influx of refugees, of which the current internal security situation is only one.

2.

After some discussion members, typically, took the cold realistic view that

(a)

(b)

(c)

흐흐

(a)

(e)

until the police reorganisation is effective the internal security situation, on a basis of present resources, is precarious.

there is no way of increasing these resources immediately except by means of assistance from H.M.G.

that assistance will not be forthcoming unless it is paid for.

The alternatives are therefore

(i) a continuing precarious internal security

situation;

(ii) an annual payment of eight million dollars.

They prefer (a) (ii) to (a) (i).

Distribution:

།

-9 JUN 1958

Page 135 20TION

H. 504

Secretary of State Minister of State

Sir J. Macpherson

Parliamentary U/S of State

Mr. Melville

Mr. Campbell

Mr. Wallace

Mr. Vile Mr.

Ashton

Page 135

WHItehall 9400 Extension 776

From: Colonel A.F. McGill, OBE

This on what

Comet 136, of, 283

In aheady knew.

Al 1916.

Dear Archie

A

258

The Whageflike of@83),

Whitehall,

London. S.W.1.

MO 2/61

June, 1958

Reference our telephone conversation today.

I am sorry we do not seem to have kept you properly informed of our arrangements to send the two regiments to Hong Kong and I thought you might like a short note from me in confirmation.

5 Field Regiment RA will leave on 10th September in the "Empire Fowey" and arrive in Hong Kong on 8th October. The second regiment, 32 Medium Regiment RA, is being made up to its full three batteries and will leave in the "Oxfordshire" on 18th November arriving 16th December. Meanwhile, as you know, FARELF have arranged to move the Loyals to Hong Kong for the period 15th September to 25th October as part of a strategic mobility exercise.

Youn

era

A. Campbell, Esq.,

Defence Department,

Colonial Office,

Church House,

Great Smith Street, LONDON. S.W.1.