TNAG-0308-FCO40-344-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 163

INMEDIATE

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8 FEBRUARY 1971

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FM F C O 671025Z

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TO IMMEDIATE HONG KONG TELNO 113 OF 7 FEBRUARY,

YOUR TELNO 75.

DEFENCE CONTRIBUTION.

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NEK:

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1. I AM GLAD TO TELL YOU THAT IF YOU ARE ABLE TO NEGOTIATE WITH YOUR EXECUTIVE AND LEGISLATIVE COUNCILS AN ANNUAL DEFENCE CONTRIBUTION OF C9 AND A HALF MILLION FOR FIVE YEARS WITH EFFECT FROM APRIL 1971 SUCH A CONTRIBUTION SUBJECT TO THE FOLLOWING CONDITIONS WOULD BE ACCEPTED BY HNG,

(A) THE HONG KONG GOVERNMENT, WITHIN THE CS AND A HALF MILLION (SUBJECT TO (B) BELOW), WOULD PAY FOR THE COST OF MINOR WORKS AND MAINTENANCE OF ALL SERVICES' BUILDINGS AND INSTALLATIONS IN THE COLONY: A SUM OF 42.2 MILLION ANMUALLY WOULD BE ALLOWED FOR THIS PURPOSE, THEREBY REDUCING THE ANNUAL CASH CONTRIBUTION, FOR PRESENTATIONAL PURPOSES IN HONG KONG, TO £6.3 MILLION,

(3)- ANY SAVINGS OR EXCESS EXPENDITURE ON THE SUM OF £2.2 MILLION WOULD LIE WHERE THEY FELL.

(C) OUT OF THE £6.3 MILLION, UP TO £3 MILLION IN ANY ONE YEAR WOULD BE TREATED AS A CONTRIBUTION TO THE SERVICES' CAPITAL WORKS PROGRAMME ON THE UNDERSTANDING THAT THOSE WORKS PAID FOR BY HONG KONG (IF NO LONGER REQUIRED BY HMG) WOULD BECOME THE PROPERTY OF THE HONG KONG GOVERNMENT.

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/(D) THE