IT:S FOR MINISTERS
Hong Kong has traditionally made a contribution to HMG towards
the cost of its defence and of the assistance which HM Forces provide
for internal security. In 1966 the amount was agreed at £5M a year
for 4 years to 31 March 1971. The current contribution covering
1st April 1971 to 31 March 1976 was settled after long negotiation
between HMG and the Governor at an average of 38M a year for å 5 year
period.
2.
It is made up as follows:-
Cash contribution
Capital Works
Maintenance and
minor works
312M
(at $2.4M a year)
€171
(22.9 for the first and second years,
£7.4M for the third and 33.9k for the fourth and fifth years)
£11M
(£2.21 a year)
The latter sum of £11M is a nominal figure; the Hong Kong Government
doing all minor works and maintenance regardless of the actual cost.
Confidential
3.
The contribution is subject to review at any time:-
a.
if the costs of capital works at April 1971
prices increase or decrease by 50 per cent or more, or
b. if there is an increase or decrease in the size
of the garrison by more than one major army unit or
equivalent or
if the economy of Hong Kong suffers such a
serious adverse change that the continued payment
of a contribution at this level can be shown to be
an unreasonable burden on the Colony's finances.
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