CONFIDENTIAL HAL

From: R.J.Andrew, AUS(GS)

Our reference: AUS(GS) 91/76

•SCR 6/57 II

Your reference:

L.M.Davies, Esq.,

Colonial secretariat

Lower Albert Road Hong Kong.

MINISTRY OF DEFENCE Main Building, Whitehall, LONDON SWIA 2HB Telephone: (Direct Dialling) 01-2186476

(Switchboard) 01-218 9000

23 February 1976

Dear Bin,

I am sorry that you have had to wait so long for a reply to your letter of 16 January about the replacement of patrol craft in the context of the new Hong Kong Defence Costs Agreement.

12.

I now confirm that, as stated in HQBF's letter 6060 of 4 November 1975, if expenditure on the new patrol craft should be required during the period of the agreement we would expect costs to be shared on the same basis as those of the remainder of the garrison.

3. The HQBF letter was of course written before the duration of the new Agreement had been decided; but it remains an accurate record of our views. The cost of the patrol craft will depend on the require- ment and the scale, nature and timing of the replacement, which cannot yet be decided; but in view of the need for decisions to be taken well before the first craft is due for replacement (because of the lead time for ordering) we consider that the question should be the subject of a joint study which we suggest should be set up about 1978.

Your car,

CONFIDENTIAL

CONFIDENTIAL

SEC2E7

No. 3 u

Date 2.3 76

INWARD

LOCTEN

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