(145181) Dd. 737490 750M 1/71 Hw.

NOTHING TO BE WRITTEN IN THIS MARGIN

SECRET

Registry HKK 10/9

No.

SECURITY CLASSIFICATION

Top Secret.

Secret.

Confidential.

Restricted.

Unclassified.

PRIVACY MARKING

.In Confidence

DRAFT CABINET PAPER

To:-

DOP (71) 44

W

37

30

Type 1+ 65

From

Telephone No. & Ext.

Department

CABINET

DEFENCE AND OVERSEAS POLICY COMMITTEE

HONG KONG DEFENCE CONTRIBUTION

Jecralan of Scale furto

17.

Арай 32

MEMORANDUM · BY THE FOREIGN AND COMMONWEALTH SECRETARY

1.

In agreement with my colleagues in the Treasury,

the Ministry of Defence and the Department of the

Environment, and after consultation with the Governor,

I have been seeking an increase in the contribution

to our Defence Budget by Hong Kong from the current

figure of £5 million to £8.5 million over the 5

This

years 1971/72 to 1975/76, which would broadly restore

forsporturecké

Hong Kong's share of cost of the garrison to what

it was in the first year of the previous agreement.

2. The estimated cost of the United Kingdom

Armed Forces in Hong Kong in 1971/72 is £26.4

million (£21.8 million running costs of the units

in the Colony, £2.4 million capital works and

£2.2 million maintenance and minor works). The

cost of capital works is forecast to rise over the

succeeding years to a peak of £4.6 million in

1974/75.

Over half the total cost is foreign

exchange expenditure.

SECRET

13.

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