12.
SECRET ÉÉ**
- 5 -
Concerning budgetary costs for Works
S the Hong Kong Government agreed to supply
after consultation with HQBF on accommodation for the future garrison, an estimate at current prices of the cost of maintenance and minor works over the next five years.
13.
Concerning the breakdown of foreign exchange costs it was noted that the following were not included in Annex F to the Defence Review's paper on costs:-
(a) foreign exchange spending by visiting ships
(b) remittances by Gurkhas to Nepal.
REDUCTION OF THE £41m. FIGURE
14.
The meeting then considered the second stage possible reductions in the 41m. figure. The following items were identified for further examination:-
(a) J.S.I.S. It appeared that only a small proportion of the cost should be chargeable to Hong Kong. I,O.D. would examine.
(b) Army transitional costs. M.O.D. would identify these costs, which would be noted for future negotiations.
(c) Chinese Language School.
examine.
See para. 9(h). M.O.D. to
(d) R.A.F. Kai Tak. The proposal to move R.A.F. Kai
Tak to Sek Kong had been examined, but had not been approved for operational, security and economic reasons. Nevertheless, if the Hong Kong Government felt that further savings could be achieved, HMG would have no objection to examining any such proposals.
(c) Single Service Command. Mr. Davies felt that, in view of the relatively small RN and RAF units, a single service, or dual service command might produce economies, and was a matter for further consideration. Commodore Perowne said that this concept raised difficult basic principles. Nevertheless Mr. Davies reiterated that such streamlining should receive high priority examination.
(f) Air Search and Rescue. The task of the RN
(after 1 April 1976) needed consideration and discussions are currently being held in London. The Hong Kong Government would have an interest in determining the role.
G.F. 316
SECRET 高度機密
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