the United Kingdom and of subsequently flying
others out to Hong Kong, would thus be avoided.
To give effect to this arrangement, however,
they say that a decision will have to be taken
The
by Spring of this year on the question of
unit
meeting the costs of the exercise: this would
allow FEAF sufficient time to select the
aircraft for Hong Kong and to get the necessary
servicing and refurbishment carried out. (The
feasibility study mentioned that any FEAF
aircraft would require part reconditioning, which
would involve some 7,500 man-hours and take up to
five months to complete).
8. In sending us the enclosed report, the
stated
Ministry of Defence made no suggestion as
regards the manner in which either the recurrent
or capital costs of the fighter unit might be
met: they did, however, sy that the Chiefs of
Staff had reiterated their stipulation that the
costs of the detachment should not be borne by
the defence budget. They are accordingly looking
to us to meet the costs and have asked us what
to reimburse them arrangements we envisage for the reimbursement
of the Ministry of Defence both for the actual
operating costs of the unit and for the net
capital amount that they would otherwise receive
by selling the aircraft back to Hawker Siddeley.
By their reference to "actual" running costs, we
assume that they are covering themselves against
any possibility that the actual costs might
exceed the estimated costs as set out in the
enclosed report. They have thus hit the ball
need to consult with firmly into our court and we accordingly thought
You on the next step. it wise to have this preliminary consultation-
with you before deciding upon the form of our
Para. 6 of
143/E /i on T.S. file
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