(134392) Dd. 737115 750m 4/70 Hw.
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Registry No.
SECURITY CLASSIFICATION
Top Secret.
Secret.
Confidential.
Restricted. Unclassified.
PRIVACY MARKING
In Confidence
SECRET
DRAFT
Memorandum
Type 1 +
From
To:-
Telephone No. & Ext.
Department
Hong Kong Defence Contribution
Additional Arguments in Support of the Recommendations
Contained in the Foreign and Commonwealth Secretary's
Memorandum to D.O.P.C.
(1) Apart from HMG's contribution towards the costs
of the garrison, virtually the only financial assis-
tance given by HMG to Hong Kong since the War has been:
(a) £l1⁄2 million grant from C.D.W. funds in 1946
Approximately £2 million in grants to the
(b)
(c)
two universities
An interest-free loan of £3 million for
Kai Tak air-field (long since repaid).
(2) The cash contribution which the Hong Kong
Government makes towards the costs of the garrison is
not the limit of the assistance provided.
Although
enjoying all services provided by the Hong Kong
Government, the garrison pays its personal taxes to
HMG; no rates are levied on Service properties and
have military establishments for the free use of valuable
Crown land which is at a premium in Hong Kong.
·(3)
The proposed annual contribution of £71⁄2 million
would allow for inflation at the rate of approximately
7% per annum, although the Governor considers that in
Hong Kong ái.more reasonable rate for this purpose
would be 3-31% per annum.
(4) The Governor has not, as yet, been in a position
SECRET
No comments yet.
Private notes are available after approval.