TNAG-0308-FCO40-344-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 62

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(4) LAST SENTENCE. THIS FORM OF COMPARISON WAS BASED ON STATEMENT

INCLUDED IN YOUR DECEMBER 1966 BROADCAST.

(0) SECOND SENTENCE REFERRED TO WAS INTENDED TO COVER ALL ASPECTS

OF FINANCIAL AND COMMERCIAL RELATIONS BETWEEN HONG KONG AND THE UK. AS TO CIVIL AVIATION, WE ACCEPT YOUR ADVICE.

WE REALISE THAT THERE ARE STRONGLY HELD OPINIONS ON THIS SUBJECT. IF UNOFFICIAL MEMBERS REACT AS YOU EXPECT WE SUGGEST

YOU SHOULD DO NO MORE THAN UNDERTAKE TO PASS ON THEIR VIEWS TO HMG.

3. PARAGRAPH 5 OF YOUR TELIO 226.

SIR ALBERT IS CLEARLY REFERRING TO THE NEW ARRANGEMENT REPLACING

THE 1969 ANGLO-GERMAN OFFSET AGREEMENT. THIS COVERS QUOTE TRADITIONAL UNQUOTE OFFSET PAYMENTS (IE A CONTINUATION OF THE

SUBSTANTIAL GERMAN PURCHASES IN THE UNITED KINGDOM FOR GOODS AND SERVICES IN THE MILITARY AND CIVIL FIELDS) AND PROVIDES THAT THE GERMAN GOVERIMENT SHALL PAY HMG DM559 MILLION (ABOUT POUNDS STERLING 62.51) IN FIVE EQUAL ANNUAL INSTALMENTS, THE INSTALMENTS ARE SUBJECT TO A GENERAL UNDERSTANDING THAT THE

CURRENT LEVEL OF BRITISH FORCES IN GERMANY BE MAINTAINED QUOTE WITHOUT ANY PERMANENT SUBSTANTIAL CHANGE UNQUOTE (SHORT TERM RE-DEPLOYMENT OF UNITS FOR E G TRAINING OR NORTHERN IRELAND, ARE EXCLUDED FROM THIS PROVISO. ) THE CURRENT STRENGTH OF BAOR IS ABOUT 50,000, OF WHOM SOME ARE IN NORTHERN IRELAND. THERE ARE ALSO ABOUT 8,500 RAF PERSONNEL IN GERMANY. THE OFFSET ARRANGEMENTS ARE OF COURSE ONLY A PART OF THE SUBSTANTIAL CONTRIBUTION THE FEDERAL GERMAN GOVERNMENT MAKES TOWARDS THE COSTS OF BRITISH FORCES IN GERMANY. UNDER THE NATO INFRASTRUCTURE ARRANGEMENTS GERMANY AS HOST COUNTRY PROVIDES LAND, ACCESS ROADS ETC AND OTHER SERVICES FREE FOR SUCH THINGS AS RAF AIRFIELDS, ARNY AMMUNITION AND POL DEPOTS, HMG ONLY CONTRIBUTE 12 PER CENT OF THE REMAINING COSTS OF THE COMMON INFRASTRUCTURE CONSTRUCTION. THE OTHER 88 PER CENT IS FUNDED BY OUR ALLIES. IN ADDITION GERMANY PROVIDES A CERTAIN AMOUNT OF FREE ACCOMMODATION (EG MARRIED QUARTERS) FOR THE BRITISH FORCES ON A BILATERAL BASIS, FURTHERMORE THE WHOLE COST OF THE BRITISH BERLIN BRIGADE IS FUNDED BY THE GERMAN GOVERNMENT. THE TOTAL EXPENDITURE ON LOCAL SUPPLIES AND SERVICES FOR THE

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/BERLIN