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HONG KONG DEFENCE CONTRIBUTION
Traditionally Hong Kong has made a contribution to HMG towards the
cost of its defence and of the assistance which Her Majesty's
Forces provide for internal security. Following prolonged
negotiations with the Hong Kong Government, the settlement described
below was reached in October 1971. The Ministry of Defence accept
that the average of £8 million per annum is the most which could
have been obtained from Hong Kong, although it represented less than
a third of the cost of the garrison at that time. At current prices
estimated annual cost of the garrison for 1973/74 is £34 million and
the average over the next 10 years is assessed at £36 million in
functional cost terms).
The present contribution:
£40 million spread over 5 years, starting
1 April 1971, made up as follows:
Cash contribution
Capital works
Maintenance and minor works
£12 million (at £2.4 million
per year)
£17 million (£2.9 million
for the first and second
years, £3.4 million for the
third and £3.9 million for
the fourth and fifth years).
£11 million (2.2 million per
year)
The figure of £11 million is a nominal one, the Hong Kong Government
doing all minor works and maintenance regardless of the actual cost.
Any underspending by the Hong Kong Government on the capital works
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