CONFIDENTH AG

STATEMENT BY THE RIGHT HON

WILLIAM RODGERS MP

MINISTER OF STATE FOR DEFENCE

24913

As you know, the purpose of my visit to Hong Kong is to put

Her Majesty's Government's position on the torns of a new defence costs agreement to succeed the present arrangements which expire

at the end of March 1976. The Goverment 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 ller 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 termo is an

important manifestation of this. It is both an essurance of

interml 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 Covernment 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

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