DEFENCE REVIEW MEETINGS

CONFIDENTIAL

CONFIDENTIAL

ANNEK A TO

RX 10039/1 GSD DATED 10JANUARY 1975

Suggested Order of Work

General

1

It is understood that the main object of these meetings is not to negotiate any particular level of contribution by the Hong Kong Government but to examine the costings, exchange information and identify issues and options.

First Stare

2:

Educating the Hong Kong Team.

2.

This means examining all the main items in the costings provided by MOD and finding out exactly how cach total is reached and what is covered by each item.

b.

This part of the discussion should take place initially on the basis of a preferred garrison of 5-2/3 major units (referred to as the £41i garrison).

C.

The best method of achieving this would be for the Hong Kong team to ask questions about individual itens. This may involve very considerable detail.

d.

There are items in the costings which are still subject to revision and these will need to be identified.

e.

Items on which the Hong Kong team may have reservations will be identified at this stage

Second Stage

3. Possible Reduction of the £41 Million Figure.

2

An attempt should be made to identify possible reductions in the £41 million figure.

b. This might be done by identifying some support services which could be reduced, without an unreasonable lowering of the proper living and welfare standards of the Forces.

C.

An examination of the ratio between teeth and support units.

d. Would some of the items included be over-generous with the reduced garrison proposed or give facilities of a higher standard than the Hong Kong Government should pay for, having regard to the standards of its own community?

2. Perhaps some items which are included in the 41 million should be wholly or partly chargeable to IMG if they provide services not wholly referable to Hong Kong's purposes.

A - 1

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