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allowed support to the Hong Kong Government to be provided relatively cheaply till now.
13.
The full budgetary costs of the forces, on the basis of current pay rates and prices, listed in paragraph 11(d) to (h) are estimated át present to amount to about £14m in a full year and this sum indicates the saving to the Defence Budget which would arise if we had no other use for these forces and were therefore able to dispense with them. The foreign exchange cost of these forces would amount to about £8m at current rates of exchange, and spending trends. In addition capital works costs for the extra battalion might amount to £2.25m
14.
b.
C.
We propose that Ministers be invited:
to agree to the proposals at paragraph 5 for the strength of our forces in Hong Kong;
to consider whether Hunter aircraft should be stationed in the Colony after their withdrawal from Singapore;
to agree in principle that the costs of the forces listed at paragraph 10 (a) - (h), with the appropriate support, should be réimbursed to Defence Votes taking account of the considerations at paragraphs 11-13.
Ministry of Defence, S.W.1.
24th April, 1968.
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