TNAG-0254-FCO40-290-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 111

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example, if the strength of the approved post-1971 garrison were reduced by one major army unit (i.e. one battalion) then,

on a straight proportionate calculation on the basis of the figures in Annex A, the estimated annual running costs of the garrison might be expected to decrease by some £1.766 million (including a decrease of £1.2 million in local costs). There should also be a corresponding reduction in the estimated eapital works costs and, again on a straight proportionate calculation on the basis of the figures in Annex B, this could perhaps amount to some £2 million over the whole of the five- year period from 1971/72 onwards. These can, however, be

Very

only feel approximate calculations.

8. But in assessing the amount of any future Hong Kong defense contribution, it will be necessary to take into account other factors which have yet to be determined. Apart from the political considerations referred to in paragraphs 5 and 6 above, it will be necessary to consider whether that contrib- ution should be related to the local costs only; or to the full budgetary costs of that proportion of the forces attrib- uted to the internal security role of the garrison; or to the Colony's ability to pay; or to a combination of these

factors;

or whether it is to be assessed on some other basis.

HONG KONG DEPARTMENT

6 July. 1979.