CONFIDENTIAL
DEFENCE CONTRIBUTION
Brief No 10
BACKGROUND
1.
The question of Hong Kong's contribution towards the costs of the Colony's garrison during the period 1971-76 was settled in October 1971 after prolonged and difficult negotiations which have left a certain legacy of ill-feeling in the Colony. The matter may therefore be raised with the Secretary of State by the unofficial members of the Executive and Legislative Councils.
2. The defence contribution has always been a sensitive issue in our relations with Hong Kong since the Colony has been the only one to have made regular and substantial payments towards the costs of its own defence. Unofficial members have been prone to argue that defence is an Imperial responsibility and that the Colony should not be expected to pay for it when so much needs to be done to provide better living standards and improve social services.
3.
of £1
During the period 1967-71 Hong Kong made an annual contribution
million plus a special additional annual contribution of £3 million towards the local costs of the garrison (which were assessed at £9-10 million out of a total annual cost of some £16 million).
Under the recently negotiated Defence Contribution
Agreement, which runs from April 1971 to March 1976, the Colony- has reluctantly agreed to make an annual contribution of £8 million towards the costs of its garrison which in the current financial year total approximately £26 million. This contribution is made up of £2.4 million per annum in cash plus a total of £17 million spread over five years for the provision of
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CONFIDENTIAL
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