15. COST:

The present cost of the garrison

is about £40M p.a.

16. HONG KONG

CONTRIBUTION:

Under the present cost-sharing

Agreement which runs out in 1976 the

Hong Kong Government currently meets

about 25% of the costs.

17. WHAT IS THE SIZE

OF THE PROPOSED REDUCTION IN THE

GARRISON AND HOW LARGE A CONTRIBUTION WILL THE HONG KONG GOVERNMENT HAVE TO PAY IN FUTURE?

As we have made clear we cannot give

details in advance of the consultations

with the Hong Kong Government.

18. TIMESCALE FOR REDUCING

THE GARRISON AND INCREASING THE HONG KONG GOVERNMENT'S

CONTRIBUTION:

That is a matter for consultation

with the Hong Kong Government and I

cannot prejudge the outcome.

The

present agreement on Hong Kong's

4

financial contribution does not

expire until 1976.

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