TNAG-0254-FCO40-290-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 24

SECRET

here to persuade him to increase his offer;

that we are resisting this pressure and have

stressed to the Departments concerned the

political implications of the matter;

(iii) Say that we think it would be a considerable

help in resisting this pressure if some

provision could be made in the agreement

shortly to be negotiated, for an

annual adjustment to cover pay and price

increases so as to maintain the real value

of the contribution over the period of the

agreement.

Transfer to

end of Note-

IVE

Hong Kong has paid an annual contribution

to "imperial" defence since 1863. In 1958 the

at₤11

contribution was fixed at 1 Million pounds per

annum. The current defence contribution agreement

between HMG and the H.K.Government was negotiated

in 1966. Under the terms of that agreement Hong

1

off

Kong makes an annual contribution of million

pounds towards the "local costs" of the garrison.

9 10 million pounds out of

were

at

(which was assessed at

a total annual cost of 16 million pounde). The

are

current agreement expires in April 1971 and we e/now

in the preliminary stages of negotiating a new

agreement to take its place.

plus a special additional

onnual

contribution of 131⁄2 million

42. The comparative strengths of the present and

planned post-1971 garrisons in the Colony are as

follows:

PRESENT GARRISON

3 Coastal Mine

Sweepers

NAVY SECRET

POST 1971 GARRISON

5 Coastal Mine Sweepers,

NOTHING TO BE WRITTEN IN THIS MARGIN