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5. SINCE CAPITAL WORKS UNDERTAKEN WOULD, IN THIS PROPOSAL, REVERT TO HONG KONG IF NO LONGER REQUIRED BY THE ARMED SERVICES THE BREAKDOWN OF THE 6.3 MLLION CASH CONTRIBUTION WOULD BE FOR U.K: DECISION: ALTHOUGH I WOULD LIKE TO BE FREE TO USE HERE A NOTIONAL FIGURE FOR CAPITAL WORKS FOR FRESENTATIONAL REASONS, THIS MIGHT BE QUOTED (SUBJECT TO YOUR VIEWS) AS POUNDS 3 MILLION A YEAR, BUT WOULD NOT BE BINDING.
Ex IN ARRIVING AT A FIGURE OF 8.5 MILLION REGARD HAS BEEN HAD TO THE FACT THAT RAF ACTIVITIES (APART FROM THE HELICOPTERS WHICH ARE INCLUDED IN OUR CALCULATIONS) ARE VERY LARGELY NOT IMMEDIATELY IN AID OF THE DEFENCE OF THE COLONY, AND THAT RN RESPONSIBILITIES EXTEND BEYOND COLONY BOUNDARIES. IT HAS PROVED IMPOSSIBLE TO SEPERATE RAF/RN FIGURES SATISFACTORILY FROM EACH OTHER, OR MAKE ANY MEANINGFUL ANALYSIS OF THE RESPECTIVE COSTS WHICH DO OR TO NOT RELATE TO HONG KONG'S DEFENCE. WE HAVE THEREFORE SIMPLY TAKEN, FAUTE DE MIEUX, HALF THE COMBINED FIGURE INTO OUR RECKONING.
7. THE PROPOSAL WOULD INCLUDE PROVISION FOR REVIEW IF THE RESIDENT GARRISON IS INCREASED OR DECREASED BY MORE THAN 1
MAJOR UNIT ( 1.5. IGNORING TEMPORARY ABSENCES, THE TRANSITORY EFFECTS OF ROULEMENT ETC).
8.
IF YOU
AM EXECUTIVE COUNCIL MEMORANDUM ON THESE LINES IS NOW IN COURSE OF PREPARATION, AND MY INTENTION IS TO PUT IT TO COUNCIL ON 9TH FEBRUARY OR AS SOON THEREAFTER AS PROVES PRACTICABLE. HAVE ANY OBSERVATIONS, THEREFORE, I WOULD LIKE TO HAVE THEM VERY EARLY. WE ARE NOW IN THE GREATEST DIFFICULTIES AS TO HOW TO PREPARE THE RELEVANT PARTS OF THE 1971-72 ESTIMATES.
9. TCTAL BUDGETTED COSTS OF DEFENCE AND LAW AND ORDER FOR 1971-72 WOULD THEN BECOME ABOUT DOLLARS 483 MILLION OR 13.5
! FEEL SURE YOU WILL PER CENT OF THE PROBABLE EXPENDITURE BUDGET.
AGREE THAT THE INCREASE OF 79 PER CENT IN THE CONTRIBUTION HERE SUGGESTED, AND THE PROPORTION OF THE BUDGET TO BE SPENT ON DEFENCE AND LAW AND ORDER, ARE ABOUT AS MUCH AS CAN BE CONSIDERED REASONABLE IN VIEW OF OTHER PRESSING NEEDS. PUT ANOTHER WAY THE PROPOSED DEFENCE CONTRIBUTION IN 1971-72 WILL ABSORB ABOUT 4.7 PER CENT OF THE REVISED ESTIMATED RECURRENT REVENUE FOR 1977-71, WHICH MAY BE COMPARED WITH 4.6 PERCENT IN 1966-67, THE YEAR IN WHICH THE
/10. IF EXECUTIVE CURRENT AGREEMENT WAS NEGOTIATED.
SE C2RET
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