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Following our answers to the questions in your 648 of the 3 July:

1. If MERMAID's refit were to be undertaken in Hong Kong the exchange with CHICHESTER should take place by March 1977 at the latest since MERMAID should start her refit by that

date. The most up-to-date information on the material state of CHICHESTER is held by Commodore Hong Kong and he should be able to advise you more specifically than the MOD on what further capital expenditure is likely for the ship. On the

basis that MERMAID would refit in UK she would replace CHICHESTER early in 1978).

2. We have no firm information on the likely cost of a refit

for MERMAID in Hong Kong. Although Commodore Hong Kong has suggested that it might cost about £1.5M, at 1974 prices, a firm estimate could only be made after it has been established that the refitting work required, according to the vessel's material

condition in 1977, can be undertaken to an acceptable standard

in Hong Kong. The total production cost of a refit in the UK

dockyard on the same price basis is likely to be £2.5M. This

figure is based on MOD's wide experience of refitting frigates in

UK dockyards but we cannot be more precise until a detailed

examination of MERMAID is undertaken before the refit.

3. The refit for MERMAID is a "normal refit, not a "major"

refit which occurs at about the half or third life of the

ship and lasts up to 2 years. A "normal" refit for a ship of this type can be expected to last about 10 months. Ships similar to MERMAID operate for 3 years after a normal refit before requiring a further one, but this period would

probably be extended, perhaps to about 5 years or even more, in the case of the Hong Kong guard ship because of the

limited operating patterns involved. But in the case of

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