SECRET
TOP COPY
264
GRS 280
PRIORITY
CYPHER CAT/A
2
31 DEC1974
LABI
" .
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FM HONG KONG 280340Z
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TO PRIORITY F C O TELEGRAM NUMBER 1284 OF 28 DECEMBER.1974
STUART'S UNREFERENCED LETTER OF 19 DECEMBER AND MY TELEGRAM NUMBER 1274: DEFENCE REVIEW.
WE SHOULD BE GRATEFUL FOR COPIES OF ANNEX A TO THE SUMMARY AND PROVISIONAL COSTINGS CONTAINED IN YOUR LETTER AS SOON AS POSSIBLE AND CERTAINLY IN ADVANCE OF THE ARRIVAL OF THE TEAM.
2. ONCE WE HAVE THIS INFORMATION WE SHALL WANT TO ANALYSE IT. IN MEANTIME FROM THE LIMITED INFORMATION SO FAR AVAILABLE AND AMONGST THE MATTERS WHICH WE SHALL WISH TO DISCUSS WITH THE
TEAM ARE THE FOLLOWING:-
(1) A DETAILED BREAKDOWN OF THE CONTENT AND COST OF THE
''SUPPORT UNITS' SHOWING THOSE WHICH APPLY TO THE ARMY AND THOSE WHICH APPLY TO THE BRITISH FORCES GENERALLY, SEPARATING THE VARIOUS UNITS SUCH AS ORDINANCE, TRANSPORT,
ETC FROM THE OTHER COSTS.
2) THOSE SUPPORT COSTS WHICH ORIGINATE FROM SERVICES SUCH AS
MEDICAL, EDUCATIONAL, WELFARE ETC.
(3)
THE ITEM OF POUNDS FOUR MILLION FOR THE NAVAL FRIGATE IN 1977/78.
(4) THE ITEM ''OTHER SUPPORT COSTS' UNDER ARMY. WHAT IS
INCLUDED IN THIS?
(5) THE REASON WHY THE ESTIMATE FOR THE TEETH ARMY UNITS
IS £9.9 MILLION IN 1976/77.
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/ (6) HOW ACCURATE