GRANBY and HAVEN/WARDEN are being met by supplementary funding; and the extra costs to HMG of retaining the Hong Kong Patrol Craft, for which there is no longer a military requirement, were covered in the additions to the Defence Budget agreed in this year's PES settlement. (The Hong Kong Government, of course, paid for the bulk of the capital costs of the Patrol Craft and now pay 65% of the running costs).
Copy to:
A J Beamish Esq CMG
FCO
ML Williams Esq
HM Treasury
P Kitchen Esq
DTP
D A Wilkinson Esq
DES
Miss F McConnell CBE
DOE
Yours
24
CONFIDENTIAL