TNAG-0060-FCO40-96-Strength-of-Hong-Kong-garrison-1968 — Page 38

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ANNEX A TO COS 1252/5/4/68 (Continued)

Movement

The progressive changeover from 2 year accompanied tours to 9 months unaccompanied tours would increase considerably the annual air lift required. Today's annual lift is about 3,500, including families. By 1975, with a garrison of 7-2/3 British units (i.e. after the Gurkhas have been disbanded) it would be about 6,700 for an

accompanied garrison and about 8,100 for a largely unaccompanied garrison, a difference of some 1,400.

Finance

18. The financial implications of a change to unaccompanied service in Hong Kong have been assessed on the assumptions that there would be no consequential additions to the present planned overall force levels worldwide and that the Brigade of Gurkhas is disbanded by the end of 1974. They are summarised below:

a.

Running Costs. In the first four years (1969/70 to 1972/73) there would be a saving of about £0.5 per annum in both budgetary and foreign exchange running costs, because of the lower cost of unaccompanied troops in Hong Kong and minor savings in civilian backing. The saving would become progressively greater in the later years, because of the reduced number of families in Hong Kong. By 1975/76 there would be an annual saving of about £m1.3 in both budgetary and foreign exchange running costs.

b.

Capital Costs. It is not possible to say exactly what the savings in capital costs would be, as it is not known whether the Hong Kong Government will continue to contribute towards the cost of works services after 1971 when the current agreement expires. Assuning no contribution by the Hong Kong Government there would be a saving in capital costs in Hong Kong of £6.08 through not having to carry out certain works services in Hong Kong for British families. This, however, would be offset by loss of receipts from the sale of accommodation in the United Kingdom of £m6.6. This is because barracks for rear parties and married quarters, which would otherwise have been disposed of as a result of the planned rundown of force levels, would have to be retained to provide accommodation for the families and rear parties of the 6-2/3 unaccompanied units in

Hong Kong. Unaccompanied service would therefore result

in a net loss of £0.52 in budgetary terms, but a saving of £6.08 in foreign exchange. Both of these figures would be changed by any contribution the Hong Kong Government night make.

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