2
the Hong Kong Government of the military presence in
the Colony and surely we ought not to expect to make a profit as it were from having a Garrison", he said.
Comparing the new defence contribution with
the 1966 contribution a Government spokesman said:
"In 1966 the total cost to Her Majesty's
Government of maintaining the Garrison in Hong Kong was
estimated at about £17 million a year compared to the
present estimate of £28 million a year. Under the old agreement Hong Kong agreed to pay £20 million over the 4-year period with 75% of this total made up by the
cash contribution. In the new agreement the cash
contribution of £12 million represents only 30% of the
total defence contribution", he added.
In his speech today the Financial Secretary
said that the percentage of Hong Kong's annual revenue spent on the defence contribution has slightly decreased since 1966. Under the old agreement 3.9% of the annual
revenue was spent on the defence contribution and under
the new arrangement the figure is 3.7%.
Describing the negotiations leading to the
defence contribution agreement as "difficult and complex"
the Financial Secretary said that the present arrange-
ments had been reached only "after much anxious
consideration in London" and that H.M.G. had originally
expected Hong Kong to pay £60 million over the 5-year
period. Mr. Haddon-Cave also revealed that the
Governor had been personally concerned with these negotiations and, in response to Britain's request for £60 million, had "quickly pointed out that a contribution
of this magnitude was quite out of the question and
quite unreasonable particularly in relation to the very
heavy calls which Hong Kong will have on its resources
over the next few years".
/Commenting....