TNAG-0310-FCO40-346-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 111

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Mr Wilford

Sir L Monson

SECRET

122)

22)

HONG KONG DEFENCE CONTRIBUTION

Hlín, 10/9

1975 Paruc.

154

146

(150).

D

1. On 23 July the Defence and Oversea Policy Committee decided

that the Governor should be instructed to do his utmost to

secure the support of his Executive Council for a proposal that

Hong Kong make a contribution towards the costs of the Colony's

garrison at an average annual rate of £8 million for the 5 year

period April 1971 March 1976.

2. The contribution was to be subject to review if the costs

of capital works. as at the base date of April 1970, were to

increase or decrease by 50 per cent or more during the 5 year

period of the agreement.

3. The Defence and Oversea Policy Committee also stipulated

that the Governor should not at that stage use his reserved

powers to obtain the desired contribution.

4. The Governor has now managed to secure the support both

of his Executive Council (on 31 August) and of the Finance Committee of the Legislative Council (on 15 September) for a

proposal which will produce the desired level of contribution.

Moreover the Finance Committee have approved the necessary

supplementary provision to meet the required expenditure during

the current financial year.

5.

The next and final step in securing the contribution is

for the proposal to be approved by the Legislative Council itself

and the Governor intends to put the matter formally to that

body on 1 October. He believes that the proposal will be

SECRET

/accepted