TNAG-0543-FCO40-638-Strength-of-garrison-in-Hong-Kong-1975 — Page 121

CORTEDEMETAL

We have

almost all the remainder, some 75% of garrison costs 7 is of benefit to the Hong

Kong economy. Despite this, the Hong Kong Government have suggested that UK

income tax, as a direct benefit to HMG, and which amounts to about £1m pa, should

be taken into account in assessing the size of the Hong Kong contribution.

resisted any attempt to change the garrison costs on this account on the grounds

that the Defence Budget,as opposed to HMG,does not benefit. If the point is

pursued attention should be drawn to the fact that no provision has been made for

pensions in garrison costs. Based on the latest actuerial assessments such provision:

would amount to about £ 1.7m 7pa for a garrison of about 2,000 7 UK Servicemen.

3

CONFIDENTIAL TAL