PRESS RELEASE
HONG KONG'S NEW DEFENCE CONTRIBUTION
Hong Kong is to make a defence contribution
to the U.K. Government of about £40 million over the
next five years.
The
The actual cash contribution to be paid will
be £12 million, which represents under 1/10th of the overall estimated cost of almost £140 million which
H.M.G. will pay to maintain the Garrison in Hong Kong
over the same period. The remainder of the new
agreemont is made up by two contributions in kind.
first of those is a sum of £17 million which will be
spent on major works and will oventually revert to the
Hong Kong Government in the form of capital assets.
The remaining $11 million is the estimated cost of
maintaining armed services buildings and the provision
of minor capital works.
Announcing the new agreement in the Legislative
Council today the Financial Secretary, Mr. C.P. Haddon-
Cave, said: "There is in our view only one line of
argument which can be said to justify the making of
any defence contribution. This is that since the
presence of the Garrison contributes very materially to
the stability and prosperity of Hong Kong, Hong Kong
should make some contribution towards the £28 million
inclusive of capital expenditure which it costs U.K. taxpayers annually to support the Garrison here".
Mr. Haddon-Cave went on to say that it had
been estimated that the direct economic benefit to
Hong Kong of having the Services stationed here was of
the order of £8 million per year. "This in a sense
makes the agreement neutral in its effect since the
defence contribution will be offset by the value to
/the.....
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