TNAG-0309-FCO40-345-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 71

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CABINET

Telephone No. & Ext.

Department

Hong Kong

DEFENCE AND OVERSEAS POLICY COMMITTEE

HONG KONG DEFENCE CONTRIBUTION

MEMORANDUM BY THE FOREIGN AND COMMONWEALTH SECRETARY

1.

Traditionally Hong Kong has contributed for many years towards the costs of its own defence and of the assistance provided by Her Majesty's Forces for internal security purposes. The question of this contribution is a very sensitive issue in relations between the Hong Kong Government and Her Majesty's Government.

2.

!

and the Ministry of Defence

During the past four years Hong Kong have paid an annual contribution of £5 million under the terms of an agreement which expired on 31 March 1971.. For several months my department in conjunction with the Treasury

and the Department of the Environment Defence, and in consultation with the Governor of Hong Kong, have been trying to negotiate a new agreement on terms which would be acceptable both to Her Majesty's Government and to the Hong Kong Government (and more specifically to the Governor's unofficial advisers on the Hong Kong Executive Council and to the Unofficial Members of the Legislative Council).

14.

In February 1971 in response to a proposal from the Governor, I informed him (after agreement with Treasury Ministers and the Minister of Defence) that

.་

if he could negotiate with his unofficial advisers an

nnual contribution from Hong Kong of £8.5 million

SECRET

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