CONFIDENTIAL

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GPS 330

PRIORITY CYPHER/CAT A

FM FCO 241715Z

CONFIDENTIAL

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REC

270

AKKION

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321)

TO PRIORITY HONG KONG TELNO 022 OF 24 OCTOBER 1975.

FOLLOWING FOR SECRETARY FOR SECURITY FROM AUS (GS) MOD

YOUR TELNO 1046

DEFINITIVE COSTS. THE INFORMATION YOU REQUIRE HAS BEEN

DESPATCHED BY SIGNAL AND COURIER TO HQPF. THE COSTS ARE CALCULATED

ON THE BASIS THAT THE NAVAL ELEMENT MIGHT COMPRISE FIVE PATROL CRAFT

WITHOUT REPLACEMENT: BUT SINCE THE NAVAL OPTIONS ARE OPEN TO

DISCUSSION WE MAY PRESENT OUR CASE IN TERMS OF A FRIGATE WITH A UK

REFIT WHICH I ICREASES THE NAVAL COST TO DOLLARS HK 38M AND THE

TOTAL COST TO DOLLARS HY 466M ROUNDED TO DOLLARS HK 470M.

2. CAPITAL WORKS. PENDING THE OUTCOME OF NECCTIATIONS WHICH COULD

AFFECT THE SIZE AND DURATION OF PROGRAMMES FOR INCLUSION IN THE MOU, THE ADMITTEDLY WIDE ANNUAL EXPENDITURE BRACKET OF £2-4M REMAINS THE

BEST POSSIBLE ADVICE. IF THE AGREEMENT IS OF FIVE YEARS DURATION THE

NEW WORKS SPENDING IS ESTIMATED AT £11-15M OVER THE PERIOD.

IT SEEMS BEST TO LEAVE FINAL FIGURES FOR INSERTION IN THE MOU OPEN

UNTIL THE PROGRAMME IS AGREED. YOU WILL FIND ON EXAMINING THE

DEFINITIVE COSTS THAT THE EARLIER MAINTENANCE ESTIMATE HAS NOT

CHANGED.

3. REINFORCEMENT. WE ARE ANXIOUS TO AVOID AS FAR AS POSSIBLE ANY

PUBLIC REFERENCE TO THE OPTION OF REINFORCEMENT BY THE BRUNEI

BATTALION IN ORDER NOT TO COMPLICATE OUR ANNOUNCED DEFENCE REVIEW

CONSULTATIONS WITH THAT STATE. WE CAN DISCUSS THIS FURTHER IF

REQUIRED AFTER OUR ARRIVAL, BUT IN THE MEANTIME, WE SUGGEST THAT

ANY PRESS ENQUIRY BE ANSWERED ON THE LINES THAT REINFORCEMENT IS AN OPERATIONAL MATTER WHICH WE CANNOT DISCUSS IN DETAIL. (THIS IS OUR

USUAL LINE OF REPLY), BUT THAT THE GARRISON CAN AS BEFORE BE

REINFORCED IN AN EMERGENCY.

CONFIDENTIAL

14.

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