TNAG-0479-FCO40-544-Strength-of-garrison-in-Hong-Kong-1974 — Page 154

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for all three Services (in fact the patrol

craft were the only likely item).

(e) The Hong Kong Government would be expected to

pay 75% of the actual cost of the garrison over

the five year period of the new agreement, that

is including extra costs arising from increases

in pay and prices during the period.

In further discussion the content and coverage of

the figure of £31M was explained. It was agreed that a

detailed breakdown would be shown in the further estimate

to be provided in accordance with paragraph 2(c) above.

The following points were also made:-

4.

(f) A workable arrangement would have to be agreed

for the calculation of the annual contribution

under the proposed new agreement.

(g) Successful presentation in Hong Kong of a

markedly increased defence contribution could

depend on production of an acceptable rationale,

related for example to the foreign exchange costs

to the UK of the garrison: it was agreed that

further thought should be given to this.

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