From: Dr. M.J. Harte
Our reference: A/16/ABROAD/5712/F1 (AD) Your reference:
CONFIDENTIAL
MINISTRY OF DEFENCE Main Building, Whitehall, LONDON S.W.I
Telephone: WHitehall 7022, ext. 6997
Dear Gaminiara,
17 October, 1967
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18
1.
(12)
Hong Kong I/S Operations
Hall's letter of 4th October to Cass asked for details of the extra costs that have fallen on Defence Votes as a result of the military assistance given to the civil authorities in Hong Kong. We have had this matter under considera- tion since the Gurkha Battalion moved as reinforcement to the Colony at the end of July this year; since then some individual reinforcements have been sent, and recently a detachment of R.A.F. helicopters has moved to Hong Kong.
2.
The recently negotiated annual Defence Contribution of EM5. by the Hong Kong Government (which includes capital works expenditure) is directly related to the normal foreign exchange costs of four major units and their support: it does not, however, relate to the extra expenditure now being incurred which arises partly because of the reinforcement to the garrison and partly because of the internal security operations on which they are engaged. Certain expenses have also arisen which are due to specific requests by the Hong Kong Government.
3. In accordance with the doctrine quoted in Cass's letter of 6th October I have set out at the Appendix to this letter the various extra costs so far reported falling on Army Votes, which we consider should be reimbursed.
4. The Air Force Department is not yet able to detail costs in connection with the detachment of helicopters but they would expect to recover the extra costs of deploying and operating the aircraft. This would in the worst case, i.e. if the aircraft had to be replaced in Singapore, necessitate charging for all the flying done by the aircraft which could, if they achieve their normal task, amount to approximately £12,000 a month for aircraft operation alone. In the event of the aircraft not being replaced in Singapore charges would be restricted to the excess flying, over task, as in the case of the internal security operation in Brunei. In addition any extra flying by transport aircraft, whether in support of the Army or helicopters, would also be charged for at extra cost rates as would extra personnel costs and certain local costs of the detachment. These latter may include hotel accommodation, hire of vehicles, motor transport spare s and repairs, POL, telephone calls, medical bills, accommodation stores, works services etc.
A.. Gaminara, Esq H.K. and V.I. Dept Commonwealth Office Curtis Green Building London, S.W.1.
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