TNAG-0183-FCO40-219-Briefs-for-Ministry-of-Defence-Ministerial-visits-1969 — Page 84

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Brief for S of S

Prepared by DS6

D/DS6/7/B(69)37

11th June 1969

HONG KONG DEFENCE CONTRIBUTION

The Present Agreement (1967/68 - 1970/71)

1. In 1966 following the Defence Review, it was decided to ask the Hong Kong Government to increase its contribution towards the cost of the garrison which then stood at £M1.5 a year plus a Defence Works Contribution of £M6 spread over six years.

2. DOPC agreed (OPD (66) 33rd meeting) that Hong Kong should be asked for £M11 a year, including the Works contribution, towards the cost of maintaining the garrison (the attributable cost of our forces in Hong Kong was estimated to be £M16 a year of which £M11 was in foreign exchange).

3. At the DOPC meeting on 19 October 1966 (OPD(66) 41st mecting) the Colonial Secretary reported that discussions with the Hong Kong Government has revealed that they would not be prepared to pay a significantly increased contribution and there was the possibility of serious unrest in the Colony should our demand be pressed. Nevertheless there was a strong case to press for a contribution to cover the local cost of the minimum garrison required for internal security purposes, the costs of which were normally borne by a Colonial territory. DOPC agreed that a contribution should be sought to meet the foreign exchange costs of the internal security garrison, viz four major Army units (and their support) plus the costs of the Works Services necessary for them. Those costs were estimated at £M4.5 excluding major works.

4.

In the event the Hong Kong Government agreed to increase their contribution on the lines approved by the DOPC and the agreement which came into force as from 1967/68 provided for:

Cash contribution

£M3.925

Minor Works (provided in kind by

Hong Kong)

£MO.475

Major Works

£MO.600

£M5.000 a year

The agreement was to run for a four year period terminating at 31st March 1971.

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