TNAG-0255-FCO40-291-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 101

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to juick of the dadating to the

figures in support of his decision to reduce his

original offer:

(a) The latest figures provided by the Ministry of

Befence for local recurrent expenditure on that

element of the Garrison required for internal

security purposes

езу show a decrease of £.48 m. on

the previous estimates provided last year.

A rough calculation on the basis of the Ministry

кий

of Defence's own figures fixed the

local

recurrent/

costs of maintaining one major Army unit at

£1.395m. annually.

The Governor rounds off the figure under (a) to

£.45 m. and that under (b) to £1 m. He then adds

them together and deducts the total of £1.45 m. from

£8 m., leaving a balance of £6.55 m.

paragraph 2 (1)

(3) The factors in (dná (2) above mean that the

economic gain to Hong Kong of the presence of the

Garrison will be correspondingly lessened.

5. The Ministry of Defence argue that!-

(1) That the above adjustments are not consistent

with the Governor's previous suggestion of "a

I

put over

figure which may be able to offer locally

any

Λ

without regard to other considerations"

(2) That the local costs of the Garrison, as given in

their latest estimates, show an increase and

not a decrease on the earlier figures.

(3) That the size of the contribution should not be

governed by the direct economic gain to Hong Kong

derived from the presence of the Garrison.

Rather should it be based on the obligation of a

Colony to pay the whole, a or at least a

reasonable part, of the costs incurred by HMG in

providing for its internal security.

Flag A

Flag G.

NOTHING TO BE WRITTEN IN THIS MARGIN

Secret

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