TNAG-0255-FCO40-291-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 102

NOTHING TO BE WRITTEN IN THIS MARGIN

W(B)L 51-7406

Flag H

Secret

(4) That the reduction does not tie in with

the Governor's previous suggestion that

11

the £8 m. offer should be considered to

be a basically stable one running for

only.

5 years and subject to review annually

if the Garrison is increased or decreased

by the equivalent of two (or more) major

Army units."

6. Comment on Arguments advanced by Ministry of

Defence:

(1) The fact remains that when the Governor

made his original offer, he was thinking

in terms of 73 major Army units - i.e.

an increase in the size of the Garrison

which would have been a very definite

consideration affecting his ability to put over

#

the figure £8 m.

(2) The Ministry of Defence are thinking in

terms of the local costs of the entire

(3)

再

•

Garrison (which show an increase of

£300,000 per annum over the earlier

28 figures) whereas the Governor has refer-

réng only to that element in the Garrison

which is required for internal security purposes (the estimated costs of which

show a decrease of £480,000 per annum).

In our original letter to the Governor

of October 1969 (which was agreed wi in

draft with the Ministry ofDefence) we

ed

ourselves mention the benefit to the Hong Kong

Local economy generated by the local

expenditure of the Garrison as an argue-

ment in support of the doctrine that a

Colony should contribute to its own

defence according to its capacity to

pay.

We can accordingly hardly object

/if the

Secret