CONFIDENTIAL
3492
HONG KONG DEFENCE COSTS
HEADS OF AGREEMENT
Her Majesty's Government in the United
Kingdom and the Hong Kong Government have concluded
an agreement relating to the composition and cost
of the British Forces stationed in Hong Kong to
replace the existing agreement which expires on
31 March 1976. The United Kingdom Government has
offered an agreement of five years: it is the view
of the Hong Kong Government that it should last for
at least seven years.
2.
1
The agreement is based on a garrison
of four infantry battalions (one British and three
(
Gurkha), a Gurkha engineer field squadron with its
training wing, five naval patrol craft and eight
Wessex helicopters.
year.
The cost of this force at
current prices is estimated at £42 m (HK$450 m) a
Subject to the arrangements in paragraph 4
below, the Hong Kong Government agrees to contribute
50% of the cost of this garrison in the financial
year 1976/77, 621% in 1977/78, and 75% in each
succeeding year, the balance being met by the United
A
Kingdom Government.
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