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Draft letter from Sir Leslie Monson to Sir David Trench
In his letter (HKK 10/9) of 31st July, Carter mentioned
that I would be writing to you about the negotiation of the
pöst-1971 defence contribution. As he indicated, we think
your suggestion of preliminary exchanges at "official" level
to be a very good one, but you will want to consider the
matter with knowledge of how we see the problem at this end.
2.
When you had your discussion with the Defence Secretary
on 25th June you knew, I think, that the garrison which had
been proposed here consisted of 73 major Army units, 5 mine
countermeasure vessels, 2 frigates, a Whirlwind unit and
RAF general support (together pork with a Hunter unit),
but you have not been told the costs of such a force.
3. I attach at Annex A a schedule of the forces proposed
and the best estimate we can make of their costs, from which
it appears that the running costs in 1971-72 would be about
£20M a year. (This compares with running costs of about
£15M in 1966.) The cost would increase if the proportion of
British troops in the garrison were increased. The schedule
does not allow for any price increases between now and 1971
(let alone during the currency of a new agreement) nor for the
increased cost of the new Service pay structure which is
expected to be introduced next year but which we cannot yet
cost.
In addition to the running costs in Hong Kong there.
would of course be the very considerable running costs of
the support provided by the United Kingdom base and the
Gurkha L. of C. I also attach at Annex B a forecast of
expenditure on capital works which again would be subject
to increase if the proportion of British troops in the
garrison increased. (In connection with capital works
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