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CONFIDENTIAL
Trier No
State's Visit to Nong Kong
February, 1972
Defence Contribution
Lall white
Background
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. During the period 1967-71 Hong Kong made an
annual contribution of £1 million plus a special
additional annual contribution of £31⁄2 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).
4. Under the recently negotiated Defence
Contribution Agreement, which runs from April 1971
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