TNAG-0255-FCO40-291-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 16

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COMPILENTIAL

The works costs for the Hong Kong Garrison for the five years 1971/72 to

1975/76 have been revised here to take into account changed assumptions and the

best information we have about prices and wages increases PD In pounds million

the total of nineteen in Annex B of my Saving Despatch HKK 14/18 - 1970 of 10 April

1970 is increased to twenty seven PD The capital element is increased from twelve

to sixteen and half PD In this Cost of Erskine barracks has of course been excluded

but proposed new item of married quarters and their ancillaries totalling seven has

been added PD Other relatively minor changes but balance of net increase is to bring

programme broadly to present price levels PD The minor works and maintenance element

is increased from seven to ten and half due primarily to prices and wages increases.

Accept that these figures may not match your own calculations quite apart from

quarters increase but object of this signal is to point out very heavy proposed local

expenditure on construction and maintenance work during the five years and which will

additionally be to the ultimate benefit of the colony.

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CONFIDENTIAL