DAILY INFORMATION
BULLETIN
DEFENCE COSTS
Wednesday, October 6, 1971 BRITISH
Colony To Contribute £40 Million
Over Next 5 Years
TRADE COMMISSIONER -7 OCT 1971
HONG KO
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Hong Kong is to make a defence contribution to the U.K. Government
of about £40 million over the next five years.
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. Government will pay to maintain the Garrison in Hong Kong over
the same period.
The remainder of the new agreement is made up by two contributions
in kind. The first of these is a sum of £17 million which will be spent
on major works and will eventually 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 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 UK
taxpayers annually to support the Garrison here".
/Mr. C.P. Haddon-Cave