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as agreed at official lead
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8.2.7
HONG KONG DEFENCE CONTRIBUTION
Background
Traditionally Hong Kong has made a contribution to HMG towards
the cost of its defence and of the assistance which He forces
provide for internal security. For the past four years this
has been at the rate of £5 million per anmım made up of an annual contribution of £1.5 million (fixed in 1958), plus a "special
additional contribution" of 83.5 million, negotiated in 1966.
The agreement under which the contribution was provided expires
in April 1971 and on the assum tion that we should continue to
expect Hong Kong to pay a share of its defence, it is now
necessary to negɔtiate a new one.
2 In 1966 the then Secretary of State for the Colonies took a
negotiating team to Hong Kong. There was an atmosphere of
considerable opposition in the Colony to the idea of an increased
contribution of the order then being demanded and agreement was
only reached after long and difficult negotiations, at on
stage of which there was a real danger that the Governor's
unofficial advisers would tender their resignation. In order to
ameliorate the situation, the emtribution of 65 x 8 presuntod
in Hong Kong as catug "in aid of the United Kingdomly balance
of payments contribution".
3 In 1967X the estimated cost of the UK armed forces in
Hong Kong was £16. In 1971/72 the comparable costs are estimated
Comprised
(at 1970 prices) at £26.4m (compileaĵof £21.8m running costs of
the units on Hong Kon, 2.4m capital works and 82.2m maintenance
and minor works. The cost of capital works is forecast to rise
over the succeeding years to a peak of 24.6m in 1974 $75. Over
1974 1975.
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