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76/51/02
CHANCELLOR OF EXCHEQUER
(205)
In Defence Committee on 5th February, 1958, you wore
invited to consider, in consultation with the Minister
of Defence and myself, whether some offer could be made to the Hong Kong Government in respect of ar Department
land in return for their undertaking to meet the addition 1
costs involved in an increase in the Army Garrison over
the six major units so far agreed.
2. As you will know, there have since been official
discussions between the departments concorred. These have led to the Governor's agreement that:-
(1) Payment for additional units for the garrison
and of compensation in respect of Bar Department lands should be treated as entirely separate.
(ii) The full defence contribution of £1 a. should (11)
continue to be paid, related to a permanent
garrison of six major units.
(iii) An additional special contribution of £250,000
per annum should be paid in respect of each
additional unit temporarily stationed in
hàng trong.
3. This means that the Governor has now accepted in
full the conditions which the Treasury and the Service
Departments have all along considered appropriate for
the financing of the additional units. The Cabinet has
/already
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