Registry No.
| SECURITY CLASSIFICATION
Top Secret.
SECRET
DRAFT
CABINET PAPER
Type 1 +
From
To:-
Secret.
Confidential.
Restricted.
Unclassified.
•
PRIVACY MARKING
.In Confidence
CABINET
Telephone No. & Ext.
Department
DEFENCE AND OVERSEAS POLICY COMMITTEE
HONG KONG DEFENCE CONTRIBUTION
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, have been
-seeking an annual defence contribution from Heng
Kong of £8.5 million
m;
for 5 year's
I
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.
3. The Unofficial Members of the Governor's
propofectant to Executive Council were at first most reluctant to
million.
agree to anything more than £5.5 million (the
equivalent after devaluation of the 25 million
out of a total cost of £16 million decided upon
when the last Agreement was negotiated in 1966)
SECRET
/and it