SECRET
SECRET
UK EYES A
UK EYES A
This
contribution would be held to imply complete abandonment by the UK of
her duty). Conversely the higher the proportion of the cost paid by
Hong Kong, the greater the 'say' the 'unofficials' would clain in
determining the size and character of the garrison and the standards to
which it should be maintained. Any proportion greater than one half
would be regarded by them as giving Hong Kong a majority interest.
is a position which the Governor for his part would not wish to arise.
(e) The presence of British forces was regarded as of economic value
(costs going into the Hong Kong economy average about £27M a year at
the September 1974 prices) and as contributing to economic stability:
presence of UK (as opposed to Gurkha) teeth arm units was described by
some as of particular significance in this respect.
(f) On the other hand, it was felt by some 'unofficials' that the
garrison is too large, or at least maintained at too high a standard,
16. Hong Kong Budgetary Position
The main features of Hong Kong's budgetary position were described as follows
by the Financial Secretary:-
(a) Substantial budget deficits are forecast for 1975/76 and for the
three years 1976/77-1978/79, which are treated as "forecast years" in
Hong Kong's budgetary planning (and would also be the first three years
to be covered by the next defence contribution agreement). These fore-
casts assumed a Hong Kong defence contribution of Hong Kong $205M or
£17M, and the size of the deficits would be further significantly
increased if the Hong Kong defence contribution were raised from this
planning figure to the equivalent of 75% of the estimated cost of the
reduced garrison. Removing the deficits would require a combination of
expenditure cuts and rephasing, tax increases and higher borrowing.
9
SECRET
UK EYES A SECRET
UK EYES
EYES A