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SEGRETEKENDS A BRIEPE
HONG KONG DEFENCE COSTS NEGOTIATIONS OCTOBER 1975
DEFENCE COST CONTRIBUTIONS BY HONG KONG
Hong Kong is understood to have paid an annual contribution
to "Imperial Defence" since 1863. We are not aware what the amounts
were before 1958 but between 1958 and 1964 the contribution was
£1M per year.
2. In 1964 HMG sought an additional contribution in the light
of the strain on the British economy due to the ever increasing
burden of defence expenditure. The Hong Kong Government thereupon
offered to provide an additional total of £6M aver six years towards
the building programme in Hong Kong for the Army and RAF.
was accepted by HMG. With this additional 21M per year beginning
in 1965/66, the total contribution became £2 per year.
This
3. In 1966, following a Defence Revie, Ministers concluded
that the Colony should be asked to contribute the full foreign
exchange cost of the whole Garrison then assessed at $11M a year.
At this time the total annual cost of the Garrison was estimated
at £16. This proposal was subsequently modified to seeking the
foreign exchange cost of only the internal security element of
the Garrison which was represented by 4 infantry battalions plus
their support. This was first costed at £5.7M but on re-examination
reduced to £4.5M.
4.
It was against this background that the Colonial Secretary went
to Hong Kong in December 1966 and in very difficult negotiations
finally reached an agreement with the Hong Kong Government which
produced a contribution of £5M per year for a period of four years
from 1st April 1967. This was made up as follows:-
EYES A