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From: Mr. M. McF. Davis, Head of F1(Air)

MINISTRY OF DEFENCE Main Building, Whitehall, LONDON S.W.I

Telephone: WHItehall 7022, ext. 7189

Our reference: Head of F1(Air)/4420 Your reference:HKK 10/9-70

Mr. Gammara

Pls speak.

5X182

Jose

W. S. Carter, Esq. CVO Hong Kong Department

1813

Foreign and Commonwealth

Office

Room 246

King Charles Street

LONDON SW1

VA DIVED IN REGISTRY No.51

17 March 1970

Dew Carter

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We didn't!

I am sorry not to have replied before to your letter of

18 February.

We merely 20

You were right in suggesting that the figures which we

Governor of 9 October needed revision but I have held up writing to brakedoon. you until an examination by MPBW and the service works divisions of

the works programme has been completed.

asked for provided for works expenditure in Annex B of Monson's letter to the

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3. I now enclose a new version of Annex B and I should be grateful if you would transmit this to the Governor. You will see that there are substantial changes in the figures. These arise from three main

causes:-

a) we have now included Part II services under £5,000 and

Part III services which were excluded before

b) the scope and cost of some services has been re-assessed

c) in the light of advice from CBF we have decided that we

should include a number of additional projects (no

provision has, however, yet been included for a possible increase in the scales of provision for married accommodation which CBF has recommended).

You will, I think, wish to bring these points to the Governor's attention together with the figures and also to remind him of two important qualifications in Monson's letter which should still be borne in mind. In the first place the revised costings still relate to a mixed Army garrison of British and Gurkha units and if the proportion of British troops in the garrison were to increase,

If such a expenditure on capital works, would also have to go up. change did indeed take place we would foresee a fairly substantial increase in expenditure from 1973/74 onwards.

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Secondly the estimates are again based on current cost levels.

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