XCS(71)12
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Reminder:
- 6 -
(a) all maintenance and minor works figures
are notional (see paragraph 16 above);
(b) virement between years would be allowed in respect of capital works expenditure, so the amounts actually spent year by year might differ substantially from those shown.
Presentational Points
19
This distribution has the presentational advantage of keeping the "cash contribution" at a steady figure, and at a level lower than it has been, while recognising that capital expenditure may for practical reasons be smaller in the initial years. Two other presentational points should be noted. First, an average expenditure of £8 million a year corresponds fairly closely to the estimate made in memorandum XCS(71)3 of the direct economic benefit to Hong Kong of the presence of the garrison; and it could be said that the Colony should not endeavour to make a profit from spending here by HM Government on its defence. Second, the Services are able to release land as a direct result of new capital works undertaken, It is now, as one result of the 1966 agreement, released to Government without charge. Since 1966 more than 160 acres have thus come back, including 42 acres of Whitfield Barracks estimated to be worth about £15 million a figure which compares with the £20 million of the last total contribution. It is not yet certain precisely what will become available as the works programme now planned is completed. Present indications are however that the area should be several times greater, including in due course some 400 acres at Laffans Plain, 100 acres or more which at present form part of Lyemun Barracks and 21 acres in Chatham Road and Argyle Street Camps. This land might not be quite as valuable as that obtained in recent years, but it would nevertheless all be useful, and should be worth at least £8 £10 million; perhaps more.
Conclusion
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Honourable Members will be asked to advise whether a proposal to contribute to defence costs during 1971 - 76 based on paragraph 18 above, and subject to the conditions in paragraph 12 above, should be accepted; and whether the Finance Committee of the Legislative Council should be invited to approve the necessary funds.
25th August 1971 (SCR 20/1486/70)
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COUNCIL CHAMBER