WEDNESDAY, OCTOBER 8, 1975
THE GOVERNOR
19
HIGHER DEFENCE COST UNAVOIDABLE
X X X X X
SIR MURRAY MACLEHOSE, TODAY SAID THAT IT WAS UNAVOIDABLE THAT EXPENDITURE ON DEFENCE WOULD INCREASE SUBSTANTIALLY NEXT YEAR.
HE DISCLOSED THAT DISCUSSIONS HAD BEEN GOING ON WITH THE BRITISH GOVERNMENT AS TO WHAT THE SIZE OF THE GARRISON
SHOULD BE IN FUTURE AND WHAT PART OF THE COSTS SHOULD BE BORNE BY THE HONG KONG GOVERNMENT.
HE STATED THAT HE COULD NOT PREJUDGE THE OUTCOME OF THE DISCUSSIONS BUT HE ADDED THAT THE HONG KONG GOVERNMENT WAS WELL AWARE OF THE BUDGETARY PROBLEMS INVOLVED IN DEFENCE COSTS AND HAD PRESENTED THESE PROBLEMS IN THE STRONGEST TERMS TO THE BRITISH GOVERNMENT.
THE CURRENT DEFENCE COSTS AGREEMENT WAS CONCLUDED FIVE YEARS AGO AND WILL RUN OUT AT THE END OF MARCH NEXT YEAR,
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