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fact the course which is being followed.
6.
Accordingly during the period
October 1969 - March 1970,the Ministry of
Defence provided us with their estimates
of the recurrent (see Annex
A
) and
capital (see Annex B ) costs of
operating and maintaining the garrison
in the post 1971 period. These estimates
were based on the assumption that the Army
element would comprise 72/3
major units.
They put the estimated annual running
costs
at₤20
20 million pounds in 1971/72 (this
figure included the sum of nearly 12 million
pounds for estimated local costs; and the
totalled
estimates for capital works dxxxixxd some
19 million pounds over the five year
period beginning in 1971/72.), In providing
these figures the Ministry of Defence
entered several caveats. They stated -
(a) that the costs would increase if the
proportion of British (to Gurkha) troops
in the garrison were increased;
(b) that the figures did not allow for any
price increases between now and 1971 (let alone
during the currency of the new agreement);
(c) nor did they allow for the increased cost of the new Services pay structure, the
introduction of which was then expected;
(a) That in addition to the running costs
in Hong Kong there would be very considerable
running costs of the support provided by the
United Kingdom base and the Gurkha line of
communications.
19.
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