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(b) Patrol craft The Navy/M.O.D. is currently examining the possibility of mixed manning using local engine-room ratings. This would achieve slight savings, which would have to be balanced against such security risks as were experienced in 1950 when some LEC 'refused'. These patrol vessels were refitted here specifically for long Kong use though their hulls were standard minesweeper hulls. They were however rather slow

The and would need replacement by about 1980. RN has no suitable replacement and one would need to be specially provided for Hong Kong.

(c) The naval base at 1.4.76 will not include any service which is not related to the Hong Kong Garrison.

(a) Movements This is broken down by service, and

includes freight and commercial passenger movements from U.K. (where necessary), local travel costs of personnel e.g. the tunnel, subsistence allowance.

(c) Married quarters It was noted that the RN generally

uses hirings, and that HMS Chichester's crew is accompanied. Commodore Perowne said that the costs for hirings would be re-checked in London, as they seemed rather high.

With regard to Annex C of the Defence Reviews paper on costs the breakdown of Army budgetary costs Col. Chapple submitted further details on the size of the present garrison, and its cost; and the total number of soldiers by categories across the board. Mr. Jones supplied further details on 'other running costs' rations, fuel, light etc.

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It was however noted that the preferred mix of Gurkha and U.K. units would not be achieved until 1st April 1977 because of constraints some of which are beyond control of the Hong Kong Government. Mr. Davies said that this indicated that no part of the transitional costs should be borne by the Hong Kong Government, and it was agreed to leave this item for further consideration. Mr. Davies commented that the support units seemed large when compared to teeth arm units. Further figures were provided, rearranged to show the appropriate cost of teeth arm units and to identify as far as possible those costs which were tri-service.

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Other points concerning the Units in the proposed Army H. and support organisation were made as follows:-

(a) the total garrison strength would drop by some 1,200

from about 10,300. These figures include locally enlisted soldiers, U.K. personnel,' and Gurkhas.

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