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XCS(71)3
the principle might be expressed in colloquial terms as being that Hong Kong should not seek to profit from spending by HMG in Hong Kong on our defence, though Hong Kong need not feel precluded from receiving a profit on spending by HMG in Hong Kong which was not directly related to our defence require- ments..
Defence costs to HMG
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It has been estimated that apart from the 5 year capital works programme of £17 million the total cost to HMG of maintaining in Hong Kong a garrison, including RN and RAF units, on the scale indicated in this paper is about £24 million a year: that is to say, the total cost to HMG over the with 5 years will be about £137 million.
BOADA.
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Out of this total the best available estimate in £ million of the local expenditure element is as follows:
Recurrent
Army (plus helicopters) £ million
RN/RAF (less helicopters)
£ million
Recurrent (other than
maintenance and minor
works)
51.65.
9.00
Maintenance and minor
works
9.50
1.50
Capital
Major works
Married quarters
8.00
2,00
7.00
Total
76.15
12.50
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But it does not follow that all this expenditure will benefit
the economy of Hong Kong, and the extent to which it does must be conjectural. Although it is possible that the Hong Kong value added content of military expenditure may be as high as 55%, a fair and reasonable assessment based on the available evidence would be that the proportion directly benefitting Hong Kong's economy would be about 50%.
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offer are:
Other factors relating to the calculation of an appropriate
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