CONFIDENTIAL

i

Capitation rates have been used to calculate personnel costs. Apart from the basic pay of UK Servicemen and UK Based Civilians, where world-wide averages have

It is been used, all costs are calculated from the rates appropriate to Hong Kong. assumed that all units are fully manned.

7. Army equipment expenditure covers new equipment, ammunition and spare parts. New equipment costs, including Clansman radios (capital cost £6m) have been amortised over a 10 year period and have been included in part in the annual totals. Because forecast equipment expenditure is particularly difficult to attribute accurately to individual units, a single figure relating to the entire garrison has been quoted.

8.

Detailed Annexes are being prepared to support the summarised figures in Annex A.

A

2

CONFIDERADA L

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