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for all three Services (in fact the patrol
craft were the only likely item).
(e) The Hong Kong Government would be expected to
pay 75% of the actual cost of the garrison over
the five year period of the new agreement, that
is including extra costs arising from increases
in pay and prices during the period.
In further discussion the content and coverage of
the figure of £31M was explained. It was agreed that a
detailed breakdown would be shown in the further estimate
to be provided in accordance with paragraph 2(c) above.
The following points were also made:-
4.
(f) A workable arrangement would have to be agreed
for the calculation of the annual contribution
under the proposed new agreement.
(g) Successful presentation in Hong Kong of a
markedly increased defence contribution could
depend on production of an acceptable rationale,
related for example to the foreign exchange costs
to the UK of the garrison: it was agreed that
further thought should be given to this.
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