SECRET
here to persuade him to increase his offer;
that we are resisting this pressure and have
stressed to the Departments concerned the
political implications of the matter;
(iii) Say that we think it would be a considerable
help in resisting this pressure if some
provision could be made in the agreement
shortly to be negotiated, for an
annual adjustment to cover pay and price
increases so as to maintain the real value
of the contribution over the period of the
agreement.
Transfer to
end of Note-
IVE
Hong Kong has paid an annual contribution
to "imperial" defence since 1863. In 1958 the
at₤11
contribution was fixed at 1 Million pounds per
annum. The current defence contribution agreement
between HMG and the H.K.Government was negotiated
in 1966. Under the terms of that agreement Hong
1
off
Kong makes an annual contribution of million
pounds towards the "local costs" of the garrison.
9 10 million pounds out of
were
at
(which was assessed at
a total annual cost of 16 million pounde). The
are
current agreement expires in April 1971 and we e/now
in the preliminary stages of negotiating a new
agreement to take its place.
plus a special additional
onnual
contribution of 131⁄2 million
42. The comparative strengths of the present and
planned post-1971 garrisons in the Colony are as
follows:
PRESENT GARRISON
3 Coastal Mine
Sweepers
NAVY SECRET
POST 1971 GARRISON
5 Coastal Mine Sweepers,
NOTHING TO BE WRITTEN IN THIS MARGIN