TNAG-0310-FCO40-346-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 72

0003230

G.F. 323

CONFIDENTIAL

2

-

The Financial Secretary had made it clear

in his speech that there has been much consideration

both here and in London as to what would be a suitable

sum in the light of these considerations.

As the

Financial Secretary has said, the amount should

neither be too small nor, too large, but it should be

seen by both the people of Hong Kong and by the

British Government to be a fair amount, bearing in

mind the existing financial and economic circumstances

of the Colony.

In the event the sum which has been agreed

is less than one third of the overall cost to Britain

of keeping troops here. In terms of our own revenue, it represents a slightly less proportion than we have

It previously been paying over the past four years.

is still a substantial sum of money for this Colony

to afford but I believe myself that the amount is

about right in the light of all the various

considerations.

There can be no question but that

the presence of the troops here does make a valuable

contribution to the stability and internal security

of the Colony. The Unofficial Members accept that

for this reason we should pay a share.

I particularly invite attention to the

fact that the contribution in cash will be £2.4 million

a year as compared with the previous cash payment

of £3.9 million a year.

Another important point

/made by the

CONFIDENTIAL