XN000022-1975-12-19 — Page 10

1000035 'P.R. 33.

HONG KONG GOVERNMENT

NFORMATION

SERVICES

DAILY INFORMATION BULLETIN

SUPPLEMENT

Friday, December 19, 1975

DEFENCE COSTS AGREEMENT

JOINT STATEMENT

United Kingdon Government and the Hong Kong Government have

agreed on the size and the division of the cost of the British garrison

in Hong Kong. This agreement will succeed the present 5-year agreement

which expires on 31st March, 1976.

The new agreement reaffirms Her Majesty's Government's

commitment to the security and integrity of Hong Kong and stipulates the size of the agreed garrison, which will be smaller than in the past,

but which will be reinforced should circumstances so require. The garrison will in future include 4 Infantry Battalions (3 of them Gurkha), a Gurkha Engineering Squadron, 5 Naval patrol craft and an RAF helicopter squadron. At current prices the cost will be £42m. a year which is some £20m.

less than the present garrison. The Hong Kong Government will meet 50% of the cost of the garrison in the first year of the new agreement (1976/77), 627 in the second year and 75% in the 3rd and succeeding

years, compared with a contribution in this financial year of about £11.

under the present agreement. The new agreement will run for 7 years initially and will be renewed for further period of 5 years on the same terms unless either Government wishes to vary them.

An important

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