SECRET
enclosed with our Saving Despatch No. 126 of 10 April
1970. We understand that this revised figure has
Treasury approval in principle.
Envisaged annual
rates of expenditure out of this total vary from
£4 million (the lowest) in 1971/72 to £6.7 million
(the highest) in 1974/75.
3. The capital element in the total is increased
from £12 million to £161⁄2 million. The cost of Erskine
Barracks has of course been excluded but a figure of
£7 million has been included for new item of married
quarters plus ancillaries including school. Remaining
changes are relatively minor and balance of increase is
required to bring the programme broadly to present
price levels.
4.
Copies to:
A.F. Thorpe, OBE, Rm. 0257, Ministry of Defence.
E.G. White, Finance Dept.,
FCO.
The minor works and maintenance element is increased
from £7 million to £10 million primarily as a result of
higher wages and of price increases in Hong Kong of more
than 30% during the last six months.
5. The bulk of this programme will involve local
expenditure on capital works which will remain as
permanent assets for the benefit of Hong Kong. We
accordingly hope that you will regard it both as justifying
a reasonable increase in your figure of £71⁄2 million and
as being the kind of expenditure which it will be easiest
to justify to your unofficial advisers. In the hope that
you will agree that some increase over £71⁄2 million
can be offered, we should be grateful for the earliest
possible indication of what figure you are prepared to
try for.
6.
There is now no hope of getting this matter to
Ministers before return of Prime Minister and Secretary
of State from Singapore towards the end of January.
If
(12803) Dd.643296 150m 8/69 G.W.B.Ltd. Op.863 (13541) Dd.643727 200m 12/69 G.W.B.Ltd. Gp.863
SECRET
NOTHING TO BE WRITTEN IN THIS MARGIN