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5.
(a)
(b)
(c)
(a)
This Government would agree to make a temporary special contribution of four million Hong Kong dollars per annum in respect of each of the additional major units temporarily stationed in the Colony.
The contribution would be quite distinct from the defence contribution, which would remain at a level of sixteen million dollars and would be related to the agreed new strength (not reported to Finance Committee, of course,) of the permanent garrison. Any reductions in the permanent garrison of six major units, irrespective of any temporary additional increase of one or two units, would at once involve a pro rata reduction in the level of the defence contribution.
The amount actually paid in respect of the additional units would be deducted from any compensation which might fall due from this Government in respect of lands surrendered under the proposals at present under examination.
Movement of the units would be ordered with highest priority as soon as the additional contribution is approved by Finance Committee. I would request that the second unit should be here not later than 1st September, for reasons of which you are well
aware.
As regards paragraph 4 (c) above, I must make it quite clear that it would be the intention of this Government to enter into the land negotiations on the basis of the principles to which this Government has consistently adhered namely, that the Services cannot properly claim any interest in the increased value of land which they occupy otherwise than by right of purchase in the open market. Since any new Service requirement for land is met free of charge, the only reasonable basis for assessing compensation is the degree of reprovisioning of accommodation actually required.
6.
I have now authorised release of the sum of
• sixteen million dollars provided in the current estimates for the defence contribution and payment will be made very shortly.
7.
I shall be grateful to know as soon as possible if units can be provided on the above terms, so that an approach may be made to Finance Committee.
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Mr. Carstairs
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Your RefPage 206 of 28ge 206 of 283
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It sou
bubr
With the Compliments of
de L. RADICE
SPECIAL CARE 28 FEB 1958
SECTION
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