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.(4)
(5)
A substantial proportion of the contribution is in respect of capital works which will revert to the Hong Kong Government when no longer required by Her Majesty's Government.
The amount agreed upon for the Colony's contribution represents no greater proportion of the total costs of the garrison than did the previous contribution
negotiated in 1966. It is considered to be a fair and
reasonable contribution in all the circumstances.
(6) Even after allowing for the Colony's contribution
towards the costs of the garrison, Her Majesty's Government still have to meet the remainder of the costs which
amount to some £18 million per annum. This represents a very substantial form of aid to Hong Kong; particularly since it may be categorically stated and emphasised that the garrison is in Hong Kong solely for Hong Kong's benefit. Were it not for Her Majesty's Government's responsibilities towards the Colony there would be no
garrison stationed there at all.
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CONFIDENTIAL
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