TNAG-0309-FCO40-345-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 11

W(B)L 51-7406

NOTHING TO BE WRITTEN IN THIS MARGIN

COPIES TO:

Mr J Brack,

Treasury.

Mr A F Thorpe,

F1(AIR) MOD.

Mr RJ Smith,

DOE Lambeth BH.

Mr P D Nairne, MOD

Mr R Gedling, Treasury.

Mr E Stretton,

DOE Lambeth BH.

Mr FH Gwynn, MOD.

+

SECRET

maintenance and minor works were left at

the contribution (Swards

£2.2 million a year, if capital works were

Λ

put at £2.5 million a year for the first

2 years, £3.0 million for the third year

and £3.5 million for the fourth and fifth

years, and if the "cash contribution"

went from £2.3 million in the first year

to £2.8 million in the second, third,

and fourth years and £3.3 million for the

fifth year, the annual total would run from

£7 million in the first year increasing

by £2 million each year to £9 in the fifth

year.

3.

Such an arrangement would be subject

to the following conditions

(a) Review at any time

(i) if the costs of capital works

at April 1970 prices were to

go up or down by 50 per cent

or more, or

(ii) if there were an increase or

decrease in the size of the

garrison by more than one

major Army unit or the

equivalent, or

(iii) if the economy of Hong Kong

were to suffer such a serious

adverse change that the continued

payment of a contribution at

this level could be shown to

be an unreasonable burden

on the Colony's finances.

(b) The £2.2 million for maintenance

and minor works would be a

notional figure only.

The Hong

/Kong

2.

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