CONFIDENTIAL
STATEMENT BY THE RIGHT HON
WILLIAM RODGERS MP
MINISTER OF STATE FOR DEFENCE
ANNEX A
As you know, the purpose of my visit to Hong Kong is to put
Her Majesty's Government's position on the terms of a new defence
costs agreement to succeed the present arrangements which expire
at the end of March 1976. The Government of Hong Kong has made
a financial contribution to the cost of the Hong Kong garrison
for many years in a succession of agreements. My task is
to explain to you the reasons why it is now necessary to ask for
a very substantial increase in that contribution.
I want to make it clear from the outset that Her Majesty's
Government's commitment to the integrity and security of
Hong Kong and the well-being of its inhabitants remains unchanged.
We are conscious that a garrison adequate in military terms is an
important manifestation of this. It is both an assurance of
internal security and an indication to the outside world of our
continuing interest. But in our view it can no longer be right
for Her Majesty's Government to bear so much of the financial
burden of providing for your security. In past years
'your defence contribution has represented only a small part of
the costs of the garrison. Moreover, owing to inflation and
the relative movement of currencies, the contribution you
undertook to make under the present agreement in 1971 has
declined in value from just under 30% of the total cost to about
17% now.
/You