5. The extra personnel costs of the Gurkha Battalion and of other reinforce- ments, such as an assault troop of the Life Guards from Malaya, have not been The included, as these reinforcements were provided from within the theatre. position would, however, require to be reconsidered should it prove necessary

Movement costs of the to provide reinforcements from a different theatre. reinforcements are a different matter. The Air Force Department has incurred

The full expenses in flying reinforcements between Singapore and Hong Kong. extent of this flying is being ascertained but it is understood that it will necessitate raising charges against the Hong Kong Government or your Depart- ment of at least £10,600. The Navy Department is also considering the necessity of raising charges in respect of movements already undertaken. should also be mentioned that if the present situation continues the intention is that the Gurkha Battalion should serve for four months only in Hong Kong so that further movements costs may arise. The Command Secretary in Hong Kong is we understand, co-ordinating local extra costs for the three services.

6.

It

Neither have certain extra costs been included which we do not consider to

These include the hire of be specifically related to internal security. transport (some £2,000) to complete the move of the BMH into new accommodation, the hiring being necessitated because military transport had to be withdrawn for standby duty with units: extra travelling expenses for LEC and LEP due to the installation of a substantial the serious disruption of public transport: number of operational residential telephones in married quarters: additional camp staff for the Gurkha Battalion since we are assuming there would be a comparable saving in Singapore; the need to move Service families from isolated

I areas with consequent termination of leases and payment of higher rents, mention these items so that you will have some idea of the extra, and unforeseen, expenditure falling on Army Votes, for which we do not propose to raise charges.

7. Our Command Secretary in Hong Kong has also informed us that in addition to the cost of the wire fence (for which you have already been given an estimate of £150,000) there may be a requirement for camps to be set up for the police and for a Bailey bridge.

8. We understand that the Hong Kong Government have been warned at official level that they may expect charges to be raised for many of the items listed in the Appendix, and my latest information is that the local MPBW representative has asked the Hong Kong Government to accept the proposal regarding Works Services (Item 4 of Appendix). It would, of course, be administratively convenient for recovery to be made locally, and I therefore seek your early agreement to our instructing our local representatives to raise charges for these items, and others that may arise of a similar nature and also for the cost of the camps and the Bailey bridge referred to in the preceding paragraph, should these be found necessary. I would also propose, again subject to your agreement, that movement charges for unit changes should be presented to you in London, although movement costs for individuals e.g. the bomb disposal personnel, might be recovered locally.

9 I am copying this letter to Holton (DS1), to Brack F1(Air) and Popplestone (F1(N) for their action on unit movement costs, and to Tribe (MPBW). A copy also goes to Hadden (Treasury).

Yours encerch

Michael Harte

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