TNAG-0255-FCO40-291-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 100

(134392) Dd. 737115 750M 4/70 Hw.

NOTHING TO BE WRITTEN IN THIS MARGIN

Registry HK K No.

SECURITY CLASSIFICATION

Secret.

Confidentia).

SECRET

DRAFT

To:-

Type 1 +

From

Mr. Gaminapa

Telephone No. & Ext.

Department

PRIVACY MARKING

.In Confidence

Note for discussion with the Ministry of Defence,

Ministry of Public Building and Works and the Treasury

Flag F

Flag A

Hong Kong Defence Contribution

When the Governor made his original offer of £8 m.

per annum for the Hong Kong post-1971 defence contribu-

tion he specifically based it on the assumption

O

2.

that the Garrison would include 7 major Army units.

The Ministry of Defence and the Treasury were not

satisfied with the offer and they held out for both

provision for annual adjustments to cover pay and price

also increases over the period of the agreement and for a

higher starting figure than £8 m.

^

2. Now that it has been decided that the Army element

in the Garrison is to continue at its present strength

of 63 major Army units; and in the light of the latest

Che

(based on

estimates provided by the Ministry of Defence of 67/2 majn Army units) recurrent costs of the Garrison in 1971/72/ the

Governor has reduced his original offer to £71⁄2 m. per

annum.

In all the circundance, this wind to be bett offers seems 3. The Department is of the opinion that the Governor's

شا

offer of £71 m. per annum is reasonable and

otted

should be supported in diseussions with the Ministry

of Defence, the Ministry of Publie Building and Works

and the Treasury,

in supper f

амилия на

The Governor puts forward the following facts and

Buts Lear

Secret

ajutasigures