ANG

SECRET

NOTE

Note prepared for Siriče. Peck at request of Definer Appr.

MS

6/5/20

25

HKK10/9

Hong Kong Defence Contribution

Hong Kong has paid an annual contribution to "imperial" defence since 1863. In 1958 the contribution was fixed at

£1 million per annum, The current defence contribution agreement between Her Majesty's Government and the Hong Kong Government was negotiated in 1966 and expires in April, 1971. Under the terms of the agreement, Hong Kong makes an annual contribution of £1† million plus a special additional anmual contribution of £34 million towards the "local costs" of the garrison (which were assessed at £9-10 million out of a total annual cost of about £16 million).

2. As a result of the previous administration's decision to withdraw British Forces from the Far East by the end of 1971, it was decided that the strength of the post-1971 gar- rison in Hong Kong should be slightly increased to take account of the fact that it would no longer be possible to

reinforce it in time of need from forces within the Far

Eastern theatre. The comparative strengths of the present and planned post-1971 garrisons in the Colony are as follows:

Fresent Garrison

Post-1971 Garrison

NAVY

3.

3 Coastal Minesweepers

ARXY

63 major army units

R.A.E

6 whirlwind Helicopters

(Aparta®pg750) 10 in

5 Coastal Hinesweepers 2 Frigates

Tanker support

73 major army unita

10 Whirlwind Helicopters

Freliminary exchanges with the Governor have already taken place preparatory to the negotiating of a new defence contribution agreement to come into force in April, 1971.

BECRET

/We

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