TNAG-0311-FCO40-347-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 16

DAILY INFORMATION

BULLETIN

DEFENCE COSTS

Wednesday, October 6, 1971 BRITISH

Colony To Contribute £40 Million

Over Next 5 Years

TRADE COMMISSIONER -7 OCT 1971

HONG KO

*******

Hong Kong is to make a defence contribution to the U.K. Government

of about £40 million over the next five years.

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. Government will pay to maintain the Garrison in Hong Kong over

the same period.

The remainder of the new agreement is made up by two contributions

in kind. The first of these is a sum of £17 million which will be spent

on major works and will eventually 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 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 UK

taxpayers annually to support the Garrison here".

/Mr. C.P. Haddon-Cave