TNAG-0310-FCO40-346-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 76

PRESS RELEASE

HONG KONG'S NEW DEFENCE CONTRIBUTION

Hong Kong is to make a defence contribution

to the U.K. Government of about £40 million over the

next five years.

The

The actual cash contribution to be paid will

be £12 million, which represents under 1/10th of the overall estimated cost of almost £140 million which

H.M.G. will pay to maintain the Garrison in Hong Kong

over the same period. The remainder of the new

agreemont is made up by two contributions in kind.

first of those is a sum of £17 million which will be

spent on major works and will oventually revert to the

Hong Kong Government in the form of capital assets.

The remaining $11 million is the estimated cost of

maintaining armed services buildings and the provision

of minor capital works.

Announcing the new agreement in the Legislative

Council today the Financial Secretary, Mr. C.P. Haddon-

Cave, said: "There is in our view only one line of

argument which can be said to justify the making of

any defence contribution. This is that since the

presence of the Garrison contributes very materially to

the stability and prosperity of Hong Kong, Hong Kong

should make some contribution towards the £28 million

inclusive of capital expenditure which it costs U.K. taxpayers annually to support the Garrison here".

Mr. Haddon-Cave went on to say that it had

been estimated that the direct economic benefit to

Hong Kong of having the Services stationed here was of

the order of £8 million per year. "This in a sense

makes the agreement neutral in its effect since the

defence contribution will be offset by the value to

/the.....

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