ARZADB
RESTRICTED
(vii) DEFENCE
Defence Costs Agreement
Very satisfactory that agreement has been reached on sharing
of defence costs in Hong Kong.
Understand that it will go to LegCo Finance Committee in near
future for their approval of expenditure.
Main features of agreement announced earlier this week.
cannot go into greater detail, but it clearly represents significant
improvement from Hong Kong's point of view.
Why isn't HMG paying more?
Under new agreement HMG will pay a larger share than under
its predecessor: we have moved significantly in Hong Kong's
direction.
Why must Hong Kong pay anything?
Believe it is generally accepted that a dependent territory in Hong Kong's position should contribute towards its defence.
Hong Kong's contributions will gradually decline towards 1997 as garrison is run down.
Why did agreement take so long?
Basis of agreement was reached some time ago. As is often
the case, sorting out the details took some time.
Timetable for withdrawal of garrison
No firm timetable has yet been established.
Talks with Chinese on future defence of Hong Kong are
progressing very well.
RESTRICTED
No comments yet.
Private notes are available after approval.