TNAG-0254-FCO40-290-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 27

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W(B)L 51-7406

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fact the course which is being followed.

6.

Accordingly during the period

October 1969 - March 1970,the Ministry of

Defence provided us with their estimates

of the recurrent (see Annex

A

) and

capital (see Annex B ) costs of

operating and maintaining the garrison

in the post 1971 period. These estimates

were based on the assumption that the Army

element would comprise 72/3

major units.

They put the estimated annual running

costs

at₤20

20 million pounds in 1971/72 (this

figure included the sum of nearly 12 million

pounds for estimated local costs; and the

totalled

estimates for capital works dxxxixxd some

19 million pounds over the five year

period beginning in 1971/72.), In providing

these figures the Ministry of Defence

entered several caveats. They stated -

(a) that the costs would increase if the

proportion of British (to Gurkha) troops

in the garrison were increased;

(b) that the figures did not allow for any

price increases between now and 1971 (let alone

during the currency of the new agreement);

(c) nor did they allow for the increased cost of the new Services pay structure, the

introduction of which was then expected;

(a) That in addition to the running costs

in Hong Kong there would be very considerable

running costs of the support provided by the

United Kingdom base and the Gurkha line of

communications.

19.

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