TNAG-0063-FCO40-99-Defence-extra-costs-arising-from-the-internal-security-situa-1968 — Page 49

Creference: IDA/15A/F1b(Air)

reference: DD2/1/12

CONFIDENTIAL

MINISTRY OF DEFENCE Main Building, Whitehall, LONDON S.W.1

Telephone: WHitelnil 7022, ext.

01-930 7022, ext.7421

318271

R&RVE

24"

November

Dear Captani Collett,

27/2/0

ATONTIZED TRAINING CHARGES FOR

10:

2.

FLYT F00EL LOATED TO CO

DO VEL LOANED TO COMMON/RANTH COMTRIES

Thank you for your letter of 19th Octoben.

RECEIVED IN ARCHIVES No.56

28 NOVO!

DD. 2/1/12

I attach a note about the intro·luation of the amortized flying training charges which meets, I hope, the requirement posed in the second paragraph of your letter and which coull be passed to the Bru.ei Government.

3. I think that the wording of this note also serves to provide your Department with a suitable explanation of how the figures for the charges have been arrivel at. The cu'e audition 1 point I would n he is that the rate of £5,000 per annud is not altogetur

replacement.

a fullest cierge. The ectual average cost of training a pilot is now somewhat highvie then this figure and is expected to rise further in the next for gents.

the amortized cost of trinlag a pilot on an advanced type such as the Lightning in (60) on 2011 fuat some £12,000 per sawit, In his letter 2-DOP/62/010 of 29th November 1911

53/59/3ttler observed that either the CD was clearly making allowance for and covering

FLAGA

FLAG D

the cost of recruiting and training additional pilots for loan overseas or, alter tively, the MOD was clarificing real interests in order to meet overseas loans. (51) on 2er 1111son indicated in paragraph 4 of his letter of 7th December 1966 to Figd the lobbere 53/158/3tion is more often applicable ie loans are nade to the detriment of the needs

of the 23. In these circumstances it has seened to us that we should not suck to recover the current (amortize) replacement cost of training & pilot but that we should fix the additional charge at a rate reflecting the average cost of training a pilot some years back bouring in mind that a pilot loaned overseas (whose services we are losing) is not likely to be one who has just energod fromthe training pol.ools,

I gather that the actual Loan Agreement with Brunei may not have been signed jet. If this is the case it might be advantageous to associate the presentation of our increasel flying training charges with any further negotiations that may need to be held on the Agreement,

-

5. As regards Hong Kong I am afraid we still do not see eye to eye. Our imite reaction here is that the considerations you quote in your letter and the argumento contained in your Departmental Memorandum all point towards the Commonwealth Office and not the MOD subsidizing the training charge. If one accepts that it is in HD's interest to show good will to Hong Kong and we can well appreciate the arguments for this at the present time - by reducing a bill claimed against the Colony, then it seems to us that the reduction should be subsidized by the Political Department rather than by the Kini.bay of Defence. If you think that a meeting would be helpful (although the matter is not all that urgent at the moment) DSB and I would be glad to attend.

Captain J. . Collett 2 (Ret'l)

Commonwealth. Office

London, S..!.

Joees sencerely,

Throck

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