GPS 90
PRIORITY
CYPHER/:CAT
SECRET
271
FM F C 0 051650Z
Su (27)
(HKK 10/1)
LABT
REF.
NEXT
SECRET
TO PRIORITY HONG KONG TEUNC 685 OF 5 SEPTEMBER. DEFENCE COSTS (NAVY): YOUR TELNO 807.
REF.
275
1. FOLLOWING ARE MOD'S REPLIES TO YOUR TWO POINTS:
(1) WE CONFIRM THAT EVEN IF MERMAID'S REFIT WERE UNDERTAKEN IN HONG KONG, ON PRESENT PLANS THE COLONY WOULD EFFECTIVELY BE WITHOUT
A GUARDSHIP DURING THE REFIT.
(11) WE CANNOT GIVE A FIRM ESTIMATE OF THE EXTRA EXPENSE UNTIL
THE MATERIAL STATE OF MERMAID IS KNOWN, AND AN ASSESSMENT MADE
OF THE STANDARD OF REFITTING WORK IN HONG KONG DOCKYARD. BUT THE ADDITIONAL EXPENDITURE WOULD BE ABOUT PDS STG 200,000.
CALLAGHAN
FILES
HD OF HKIOD
HD OF DEF DEPT
SIR D WATSON
MR MALE
MR THOMSON
COPIES TO:
MR WARD, DS6, MOD
SECRET