SSECRET
15.
The Ministry of Defence Team stated that a simple rule of thumb for costing the Frigate, or the Patrol Craft, including their support costs is:
E.
Frigate:
Four Patrol Craft:
£2.5M
£1.5M
STAGE 4
HONG KONG BUDGETARY SITUATION
16. The Ministry of Defence Team suggested to the Hong Kong Government that there may be presentation advantages if the sum of the last Defence Costs Agree- ment, ie, £8.5M at 1970 prices, was updated to 1974 prices. Secretary for Security replied that the total contribution cost rise would still be known by the unofficial members of the Legislative Council and others and further, it did not overcome the problems of finding the amount of funds sought by HMG.
The meeting discussed the possibility of making Hong Kong's contribution a graduated one. The Hong Kong Government stated that:
17.
18.
2.
This was linked to Hong Kong's ability to pay.
Until the total amount required was known, together with the forecast GDP, this approach was difficult.
10.
It was agreed that the agreement should be for a 5 year period.
STAGE 5
THE INFLATOR
19. The Hong Kong Government agreed that an "inflator" would be applied. meeting studied a draft agreement. The proposed agreement is at Annex D.
The
20. The Ministry of Defence Team undertook to provide the Hong Kong Government with information as to how the pay arrangements for Gurkhas were expressed in the tripartite agreement between Nepal, India and UK.
STAGE 6
21.
-
PUBLICITY
The meeting agreed that this must be deferred until a full programme was known. Should enquiries be made concerning the current visit of the Ministry of Defence UK Team, it should be stated "off the record" that this was a fact finding mission.
- SECRET
SECRET
A C WARD Major
for Commander