TNAG-0480-FCO40-545-Strength-of-garrison-in-Hong-Kong-1974 — Page 67

CONFIDENTIAL

DRAFT

BACKGROUND NOTE

1.

The current annual cost of the Hong Kong garrison is about £42m. The cost can vary depending on what expenditure is included eg Gurkha Lines of Communication, Air Movements etc so it is con-

sidered safer to quote a rounded figure of £10m. The Hong Kong

Defence Contribution covering April 1971 to March 1976 was for a

total of £40m. to be provided over the 5 years: The amount within

this for 1974/75 was £8.5m. There has however been a recent agreed

further contribution by the Hong Kong Government of a total of £2.85m.

towards capital works costs bringing the total Defence Contribution

up to £42.85m. It would be reasonable to attribute part of this

increase to current costs and we would therefore regard the Hong Kong

Government as paying about £10m. out of about £40m. at the present time. Thus, "about 25%" is a sufficiently accurate answer as to the

proportion of the cost currently met by Hong Kong and was given in

reply to a question from Mr P Walker on 9 December, 1974.

The

2. Gross National Produce statistics for Hong Kong are not

published. The latest Gross Domestic Product figure has been

estimated as Hong Kong dollars 28.300m. for 1973, or approximately

£2270m. GNP would be expected to be somewhat higher than GDP7.

Defence Contribution of £10m. expressed as a percentage of GDP is

thus about 0.4%. Since accurate up-to-date GNP figures for Hong Kong

are not available it is recommended that the proportion should be

expressed as about less than 147.

CONFIDENTIAL