SECRET
SAVING TELEGRAM
BY BAG
FROM F C O 0811458-
202
S'E CRET
2+0
924
TO HONG KONG TELNO 49 SAVING OF 8 AUGUST
IN HKK 10/1)
RECEIVED IN REGISTRY No. 50
237
FOR SECRETARY FOR SECURITY
DEFENCE COSTS (NAVY):・ YOUR TELNO 648
1. Your Para 1. Further to their recent discussion with Wiggham, MOD
advise as follows:
(1) If Mermaid was to be refitted in Hong Kong, exchange with Chichester should take place by March 1977 at latest since refit should start by that date. Commodore Hong Kong holds the most up-to-date information on Chichester's condition and should be better able than MOD to advise on likely capital expenditure meanwhile. If Mermaid were refitted in UK, she would replace Chichester early in 1978.
(2) Commodore Hong Kong has suggested that a refit in Hong Kong might cost about £1.5m at 1974 prices. But firm estimate could only be made after it was established that the work required, according to Chichester's condition in 1977, could be undertaken to an acceptable standard in Hong Kong. Depending again on Chichester's condition in 1977, MOD estimate total production cost of a UK refit (on same price basis) at around £2.5m.
(3) This would be a "normal" and not a "major" refit (which occurs at about the half or third life of the ship and takes up to 2 years). A "normal" refit should take about 10 months.
Similar ships would usually not need another normal refit for 3 years: this would probably extend to, say, five years or even more in case of Hong Kong guard ship, due to limited operating patterns. MOD envisage that, having once brought Mermaid up to standard, they would follow current practice with Chichester, i.e. periodic docking of 4-6 weeks, thus avoiding the need of a further lengthy refit; but, they cannot guarantee that a further refit would not be necessary eventually. (There are no plans to provide Mermaid with services of a Fleet Maintenance Unit at dockings. Contract maintenance may result in lower standards and could shorten period between refits).
(4) As explained to Wiggham, NOD have assumed for planning purposes that Mermaid will replace Chichester in early 1978 after refit in UK. Any change to this plan would raise difficulties,
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/ which would