(134392) Dd. 737115 750M 4/70 Hw.
NOTHING TO BE WRITTEN IN THIS MARGIN
Registry HK K No.
SECURITY CLASSIFICATION
Secret.
Confidentia).
SECRET
DRAFT
To:-
Type 1 +
From
Mr. Gaminapa
Telephone No. & Ext.
Department
PRIVACY MARKING
.In Confidence
Note for discussion with the Ministry of Defence,
Ministry of Public Building and Works and the Treasury
Flag F
Flag A
Hong Kong Defence Contribution
When the Governor made his original offer of £8 m.
per annum for the Hong Kong post-1971 defence contribu-
tion he specifically based it on the assumption
O
2.
that the Garrison would include 7 major Army units.
The Ministry of Defence and the Treasury were not
satisfied with the offer and they held out for both
provision for annual adjustments to cover pay and price
also increases over the period of the agreement and for a
higher starting figure than £8 m.
^
2. Now that it has been decided that the Army element
in the Garrison is to continue at its present strength
of 63 major Army units; and in the light of the latest
Che
(based on
estimates provided by the Ministry of Defence of 67/2 majn Army units) recurrent costs of the Garrison in 1971/72/ the
Governor has reduced his original offer to £71⁄2 m. per
annum.
In all the circundance, this wind to be bett offers seems 3. The Department is of the opinion that the Governor's
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offer of £71 m. per annum is reasonable and
otted
should be supported in diseussions with the Ministry
of Defence, the Ministry of Publie Building and Works
and the Treasury,
in supper f
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The Governor puts forward the following facts and
Buts Lear
Secret
ajutasigures