TNAG-0334-FCO40-370-Visits-of-Secretary-of-State-for-Foreign-and-Commonwealth-Af-1972 — Page 150

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CONFIDENTIAL

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State's Visit to Nong Kong

February, 1972

Defence Contribution

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Background

The question of Hong Kong's contribution towards

the costs of the Colony's garrison during the

period 1971-76 was settled in October 1971 after

prolonged and difficult negotiations which have left

a certain legacy of ill-feeling in the Colony. The

matter may therefore be raised with the Secretary

of State by the unofficial members of the Executive

and Legislative Councils.

2.

The defence contribution has always been a

sensitive issue in our relations with Hong Kong

since the Colony has been the only one to have

made regular and substantial payments towards the

costs of its own defence. Unofficial members have

been prone to argue that defence is an Imperial

responsibility and that the Colony should not be

expected to pay for it when so much needs to be

done to provide better living standards and

improve social services.

3. During the period 1967-71 Hong Kong made an

annual contribution of £1 million plus a special

additional annual contribution of £31⁄2 million

towards the local costs of the garrison (which

were assessed at £9-10 million out of a total

annual cost of some £16 million).

4. Under the recently negotiated Defence

Contribution Agreement, which runs from April 1971

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