SECRET
BMX 14
DEFENCE REVIEW
HONG KONG
OFFICIAL RECORD OF 8/9 JANUARY, 1975 MEETING.
Mr. Roberts, welcoming the Defence Review team, stated that the main object of the meetings was to examine costings, exchange information, and identify issues and options which could be negotiated later.
2.
In the past H.M.G. had financed the major portion of the Garrison's expenditure, and the Hong Kong Government had not sought detailed knowledge of the breakdowns. If the Hong Kong Government were to provide a substantially increased financial contribution it would be essential to ascertain what the present and proposed costs covered, not only for its own information, but also to satisfy the inevitable questions posed by Unofficial members of the Executive and Legislative Council, in accordance with normal Hong Kong budgetary procedure. Following this examination an attempt could be made to identify possible areas for reduction of the 41m. figure.
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Mr. Bryars thanked Mr. Roberts for his welcome.
He confirmed that the suggested order of work which had been circulated was acceptable.
EXAMINATION OF M.O.D. COSTINGS OF THE PROPOSED
441m. GARRISON
4.
In considering the M.O.D. costings of the proposed 341 (5 2/3 Bn) Garrison, Mr. Bryars stated that the figures were provisional because there were some items
(e.g. Airtrooping and Works Service) which had not been finalised, and not all the features of the proposed Garrison had yet been approved by M.O.D. Mr. Jones explained that the extra 33m. on the figures provided in October was due to minor adjustments to the original costing figures discussed in London with the Hong Kong team in October (it had been agreed that 232m. was a closer estimate than £31m.) mostly concerning the inclusion of charter costs for airtrooping from U.K. and Nepal to Hong Kong, currently an R.A.F. task. Furthermore it was noted that the 1974 cost of the present Garrison was estimated at £50.1m. An annual sum of £6m. had been included for Works Services, including £2m. per annum for maintenance. As yet the m. capital works figure takes no account of individual approvals. Although reorganisation of the Garrison is likely to call for the greater part of the building programme falling in the earlier years, this would also be subject to the capacity to plan and build at a rate exceeding £4m. annually, Col. Chapple pointed out that no costs had been included for a U.K. Gurkha Battalion, or any other Gurkhas stationed outside Hong Kong or Nepal.
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