SECRET
"There ves criticism by the Hong Kong represent. alives of the apparently high capite cast of the patrol craft.
new
नै
UK EYES A
during the formal sessions is given in the following paragrapha.
Trimming the estimatea costs of the "reduced" garrison.
8.
The Hong Kong representatives accepted that the costs of t
"reduceù" garrison incorporated major economies in command
structure and in the support area. But they did not conceal
their belief that this process could be carried further.
The
UK team explained their reasons for believing that further
they rationalisation would not yield major economies. But/undertook to re-examine the estimated costs of two items (air trooping,
and the refit of the frigate MERMAID); they agreed in principle
that a joint examination should be made of possible greater
integration of defence and civilian medical and educational
organisations in Hong Kong (though of presentational value,
savings from this were not expected to be great): and they
pointed out that further savings might arise as a result of
and other detailed examination
UK The Hong-
normal establishment reviews/of the new, structure.
explained
Kong representatives accepted that total savings made possible
would be unlikely to bring by all these processes ee-la-not be guarentega to reduce the
average annual cost of the garrison significantly below £40M.
provision of reese
It was agreed that the capital cost of the new navel patrol
whose cost is
craft (which are outside this average figure see paragraph
6(a) above) should be set aside for separate consideration.
Removing from the costing elements not attributable to Hong Kong
9.
The UK team undertook to consider whether all or part of
the the costs of the JTS and/ Chinese Language School should be
and/Chinese
removed from the costing on the grounds that they served the
interests of the UK rather than liong Kong, and also whether
part of the cost of the Gurkha L of C (relating to the battalion
stationed in the UK) should be treated similarly. But it was
accepted that reductions on this account would be unlikely to
exceed £ M.
SECRET
UK EYES A
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