TNAG-0308-FCO40-344-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 184

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paid fu by itn.

£2.2m pa) will be absorbed in Hong Kong public works votes,

thus reducing the size of the animal cash contribution (for

£6.3m.

presentational purposes) to 46.32% £6.30

krded

سلم

Up

to

heated

(b) An agreed proportion of the sun os a8.5m (bup any one year would be orked as a contribution to the

f

those

Services' capital works programme on the understanding that ever

works if no longer required by HMG) would become the property

of the Hong Kong Government.

7.

(c) The agreement would be subject to review only:

^

(1) if the strength of the present garrison were increased

or equivalent or decreased by more than one major Aray ukit

(ignoring temporary absences and the transitory effects

of roulement etc).

(11)

if, during the period of the agreement, there was a

substantial increase or decrease of 50% or more on

April 1970 prices in the capital works costs.

as

The Governor attaches particular importame to the capital

para 7(b)) works element (above) and to the introduction of the principle

Chạt new buildings will revert free to the Hong Kong Governlent

frame is ement for

If the Saxy¿cos over cease to Ec tam.

to e them. This will be an

important selling point for him in persuading his unofficial

advisers that they will be getting value for money.

8. In cash terms the offer represents a 70% increase on the current contribution. Be it amounts to only 32% of the costs

that are estimated to be incurred in Hong Kong in the first year

of the new agreement as compared with the 31% represented by

the current contribution in its first year of operation

(1967-68). similar comparison in terms of proportion of the

Colony's total recurrent reveme is 4.7% and 4.6%. In essence

therefore the offer restores the 1967 position.

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