HONG KONG TO PAY ADDITIONAL 340 MILLION OR DEFENCE

Colony To rain In Land Aai Building Acc uisitions

Overal. Payments To Remain At Same evel

•As Past Two Years

Hong Kong's cat 1 contribution to defence co. ts in the Colony ove

the next four years will be increased by $40 mill: ɔn a year above the

cur: ent estimated con itments but Hong Kong will ¿ in in land and buil. Ing

acquisitions under ne

British Government.

arrangements which have bee: negotiated with the.

The overall ann al contribution, including a 1 land, building and

main tenance commitmen s, capital and recurrent, wi.1 stand at $80 milli a

the same amount paid it by Hong Kong this year and last year under pre ent

arrangements when alland and building payments a;e taken into account,

Announcing this on a television and radio br,adcast tonight (Tuesday),

His Excellency the Governor, Sir David Trench, saic that the new arrangements

are a "deliberate contribution towards the continued stability of the pound,

as well as a contribution towards defence costs."

These new arrangements will form the basis of the proposals which

will be put before Legislative Council during the next budget session for

the Council's formal consideration.

During the course of his broadcast, the. Gaveror announced that in

July, this year, Her Majesty's Government decided to ask the Hong Kong

Government to try to pay two-thirds of the total cost of $256 million of

maintaining the full amy garrison, and the Royal Navy and Reyal Air Force

elements in Hong Kong.

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