TNAG-0310-FCO40-346-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 65

Sir,

Final Version

SPEECH BY THE HONOURABLE THE FINANCIAL SECRETARY

IN LEGISLATIVE COUNCIL ON DAY, 1st OCTOBER, 1971

6th

FRIDAY at WEDNESDAY,

The schedules for the first quarter of the current financial year and for the period 1st July to 15th September, 1971 cover supplementary provisions totalling $98.6 million. The Finance Committee has

approved all the items in the schedules and the purpose of this resolution is to seek the covering authority of honourable Members of this Council.

Of this sum of $98.6 million, Public Works Non-Recurrent accounts for $38.2 million, made up largely of $11.2 million required to meet the cost of new projects upgraded to Category A of the Public Works Programme since the Estimates were prepared, $9.9 million required as a result of faster progress on existing projects and $3.8 million due generally to increased costs.

There are two large items in the schedule under Head 36 Defence: Miscellaneous Measures. $10.9 million is for maintenance and minor works for the Services on a reimbursable basis for the first six months of this financial year to enable works to continue until such time as a new Defence Costs Agreement had been concluded. I am able to announce today that such an agreement has now been negotiated with Her Majesty's Government in the United Kingdom and approved by the Governor in Council and the Finance Committee of this Council. Accordingly, $34.9 million is required by way of a cash contribution towards defence costs for the current financial year. In due course, further funds will be required for maintenance and capital works, under the terms of this new agreement. The agreement is to run for five years from 1st April of this year.

Honourable Members may recall that, in 1966, an agreement was reached with Her Majesty's Government by which Hong Kong contributed, for a period of four years beginning on 1st April, 1967, a

a sum of £5 million per annum of which £3.925 million was in cash, £475,000 for maintenance

/and...