GF 323
CONFIDENTIAL **
ANNEX A TO XCC(78)91
EXTRACT FROM XCS1(75)3 DATED 9 OCTOBER 1975
NOTE FOR EXECUTIVE COUNCIL
DEFENCE COSTS AGREEMENT
Note by Secretary for Security
Honourable Members were last notified on the stage reached at the official level in discussions on the successor agreement to the current Defence Costs Agreement (which expires 31st March 1976) on 12th August 1975 when, under cover of note XCS1(75)2, the draft of a Memorandum of Understanding (MOU), drawn up between officials of the Hong Kong Government and officials of Her Majesty's Government was submitted for information. The Memorandum provides a framework within which details of garrison size, cost and cost sharing can be fitted when these are known.
5.
Royal Navy Element.
The proposed 4 1/3 garrison includes, as the sole Navy presence, one frigate (as opposed to the current strength of one frigate and five patrol craft, and the 'preferred' garrison element of one frigate and three patrol craft). HMG has confirmed, however, that other alternatives are:
(a)
(b)
Hong Kong could opt for the five patrol craft.
Hong Kong could retain the frigate with three patrol craft if Hong Kong was prepared to meet the full cost of three patrol craft.
A naval squadron of 1 frigate and 3 patrol craft would provide both a deterrent and support for the Marine Police. It is however costly. On the grounds of cost the choice seems to narrow down to one between a frigate and the 5 patrol crat.
6.
"-rlier it was felt that, if it came to a choice between the frigate alone and patrol craft alone, the frigate was to be preferred mainly because of its deterrent value. The patrol craft, on the other hand, because of their numbers and flexibility provide a more effective operational support for the Marine Police. A direst comparison is difficult because of the complementary nature of the roles of the larger frigate and the smaller patrol craft, and is complicated by the question of replacements (the frigate is due to be replaced early in the currency of the new Agreement; the patrol craft would probably need to be replaced during the 1980's). After dis- cussion with the CBF and the Captain-in-Charge, Hong Kong Government officials have come round to the view that the five patrol craft option is to be preferred. A background brief to assist in consideration of this aspect of the garrison reduction is annexed.
CONFIDENTIAL #