W(B)L 51-7406
NOTHING TO BE WRITTEN IN THIS MARGIN
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the
(The estimatto running cos/5 garrison are set out in Annex A:
the capital costi, including works
Are
namitenance costí,
geven his Annex B)
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followed up by deploying their regular forces
on the frontier, the distinction between
external defence and internal security roles
is essentially an unreal one. The intention
is that the new Agreement should be subject
to review only if the present garrison of
6 major units should be varied by not less
than two major units either way.
6.
I think that we must accept that the
arguments which the Governor can use to
sell his plan in Hong Kong are not necessarily
those which it would be appropriate for us to
use here. He proposes to justify his figure
of £7.5 millions on the basis that the total
estimated local expenditure in 1971/72 of
the whole garrison the estimated recurrent
and capital-eests of which are set out in
Annexes A and B respectively) is of the
order of £13.1 millions, of which he estimates
that half, or £6.55 millions, will represent
economic gain to Hong Kong He will then
argue that Hong Kong should not make a
profit out of the forces sent by H.M.G. for
the defence of the Colony and he will ask
for £6.55 millions plus an element to cover
inflation over the period of a five-year agreement. He believes that it is best to
agree on a fixed figure for each of the five
years, which will not be the subject of an
annual haggle, and is therefore prepared
subject to the advice of his Executive Council,
to seek an annual contribution from his
Legislative Council of £7.5 millions per year,
taking
to take inflation into account.
7.
In addition to this proposed contribution
to H.M.G. s costs it should not be forgotten
that Hong Kong is already spending some
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15 £20 millions.....
15£20