CONFIDENTIAL
1.
SUMMARY RECORD
Officials of the Hong Kong Government (HKG) and the Ministry of Defence (MOD) met in London between 16 and 20 June 1980 to discuss the future size of the garrison and a new Defence Costs Agreement (DCA).
Background
2. At earlier discussions in March it had been agreed that MOD Cost Accountants would undertake a costing of the Hong Kong Garrison in 1979/80 in accordance with established UK Government cost accounting conventions. That costing exercise had now been completed.
1979/80 Costing
3. Pay and Allowances. MOD explained that the pay and allowances shown in the costing included non-effective benefits, Nepal and Training Team Brunei (TTB) costs, and the costs of the Chinese Language School (CLS), the Joint Service Intelligence Staff (JSIS) and the RN Coastal Station at Tai 0. These were not fully included in the 1975 DCA. In the case of Nepal and TTB, only that proportion attributable to the Hong Kong Garrison would figure in a new-DCA. MOD acknowledged that the bulk of the work of CLS, JSIS, and Tai O was not directly related to the Garrison, HKG accepted non-effective benefits as a legitimate cost, and did not disagree with the attribu- tion of Nepal and TTB costs.
4.
Travel and Movement. MOD explained that:
elements included under this heading had been covered in 1975 under the heading of Equipment/Stores/Supplies;
a.
b.
VC 10 and Hercules costs could be reduced to £11.85M by the removal of flights for short-term reinforcements and by application of the prevailing rate at the time of each move- ment;
C. 1979/80 was not a representative year. Charter was not introduced until 10 June 1979, and the year included two battalion roulements;
d. charter could not meet the whole movement requirement. Training flights were needed for reinforcement tasks to maintain a pool of experienced RAF aircrew who were familiar with Hong Kong's airfield approach and air traffic control system.
In 1979/80 some 14% of total RAF VC 10 effort was devoted to Hong Kong.
e.
CONFIDENTIAL
E