TNAG-0182-FCO40-218-Defence-contributions-1969 — Page 156

the United Kingdom and of subsequently flying

others out to Hong Kong, would thus be avoided.

To give effect to this arrangement, however,

they say that a decision will have to be taken

The

by Spring of this year on the question of

unit

meeting the costs of the exercise: this would

allow FEAF sufficient time to select the

aircraft for Hong Kong and to get the necessary

servicing and refurbishment carried out. (The

feasibility study mentioned that any FEAF

aircraft would require part reconditioning, which

would involve some 7,500 man-hours and take up to

five months to complete).

8. In sending us the enclosed report, the

stated

Ministry of Defence made no suggestion as

regards the manner in which either the recurrent

or capital costs of the fighter unit might be

met: they did, however, sy that the Chiefs of

Staff had reiterated their stipulation that the

costs of the detachment should not be borne by

the defence budget. They are accordingly looking

to us to meet the costs and have asked us what

to reimburse them arrangements we envisage for the reimbursement

of the Ministry of Defence both for the actual

operating costs of the unit and for the net

capital amount that they would otherwise receive

by selling the aircraft back to Hawker Siddeley.

By their reference to "actual" running costs, we

assume that they are covering themselves against

any possibility that the actual costs might

exceed the estimated costs as set out in the

enclosed report. They have thus hit the ball

need to consult with firmly into our court and we accordingly thought

You on the next step. it wise to have this preliminary consultation-

with you before deciding upon the form of our

Para. 6 of

143/E /i on T.S. file

NOTHING TO BE WRITTEN IN THIS MARGIN