I
CONFIDENTIAL
3.
Similar but smaller increases in pay and
allowances for Gurkhas and locally recruited Chinese,
both uniformed and civilian (15% - 20%),
d. An increase in UK equipment costs of about 20% and
air charter costs by about 40%.
e.
The falling value of sterling against the Hong Kong
dollar. The average September 75 market rate was
10.55 dollars to the S as compared with about 11.8 in October
74 when the earlier estimates were drawn up, This is a
reduction of over 10%.
The real (constant price) changes in garrison costs are
much less significant. The more important are:
Revision of the cost of the Naval presence DOW
based on 5 patrol craft without replacement and therefore
excluding frigate refit costs.
b. The omission of works costs in Nepal fron earlier
estimates (£0.4m).
c. A reduced estimate of receipts from the Hong Kong
medical authorities in respect of civilian use of the
BMH (20.2m). The earlier figure was an arbitrary
first assessment.
2.