TNAG-0438-FCO40-503-Visits-of-UK-Members-of-Parliament--to-Hong-Kong-including-v-1974 — Page 81

IN CONFIDENCE

11.

DEFENCE CONTRIBUTION

Hong Kong has paid an annual contribution to "imperial" defence

since 1863. Against a background of rising costs for HMG in Hong Kong

(the estimated running cost of all Service units in the Colony for

1972/73 is about £28 million), an increased Hong Kong contribution was

negotiated in October 1971 for a five year period. The Agreement provides

for an average annual contribution of £8 million;

arrangement the annual contribution was £5 million. Hong Kong's

contribution is a sensitive topic in the Colony;

Unofficial Members of Executive and Legislative Councils.

12.

AID

under the previous

especially amongst

In the past, we have given little aid to Hong Kong, whose needs are

rather different from our normal developmental criteria. It has, however,

been agreed that we should provide £500,000 for equipment and books for the

new Hong Kong Polytechnic, in addition to £400,000 agreed earlier for

technical institutes.

Hong Kong & Indian Ocean Department

Foreign and Commonwealth Office

May 1974

IN CONFIDENCE

8.