TNAG-0479-FCO40-544-Strength-of-garrison-in-Hong-Kong-1974 — Page 146

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TO PRIORITY HONG KONG TELNO. 923 OF 25 OCTOBER. 1974 ·

DEFENCE REVIEW.

Dinfille PIA

then Pla

1. FOLLOWING IS A DRAFT NOTE OF MEETING BETWEEN YOUR TEAM AND

MINISTRY OF DEFENCE ON 23 OCTOBER. GRATEFUL FOR ANY COMMENTS

AND AMENDMENTS.

HONG KONG : TERMS OF A NEW DEFENCE COSTS AGREEMENT.

NOTE OF A MEETING HELD IN ACDS(POL)'S ROOM M O D WEDNESDAY,

23 OCTOBER 1974 AT 1530.

THOSE PRESENT: MR J.D. BRYARS, AUS(GS) (IN THE CHAIR)

REPRESENTATIVES OF HONG KONG GOVERNMENT AND OF

CBF HONG KONG

28/10

REPRESENTATIVES OF FCO, ACDS(POL), ARMY DEPARTMENT, NAVY DEPARTMENT AND DEFENCE SECRETARIAT.

THE PURPOSE OF THE MEETING WAS AS SET OUT IN PARAGRAPH 3 OF THE

GOVERNOR OF HONG KONG'S TELEGRAM 189915A TO F C O VIZ.

''TO MAKE SURE THAT WE ARE WORKING FROM THE SAME BASIS OF COSTS, AND HAVE A JOINT LOOK AT ITS IMPLICATIONS FOR 1976/77 AND AFTER

AT A GIVEN FORCE LEVEL. } } THE HONG KONG TEAM STATED THEIR

OBJECTIVE AS TO CLARIFY THE FIGUREWORK, NOT TO NEGOTIATE: BUT

THEY EMPHASISED THEIR WEED TO HAVE AS SOON AS POSSIBLE FOR

PURPOSES OF BUDGETARY PLANNING A FIRM FIGURE FOR THE DEFENCE CONTRIBUTION IN 1976/77, WHICH WOULD ALSO BE PRESENTABLE IN HONG KONG AS A FAIR DEMAND RELATED TO AN ADEQUATE GARRISON.

2. IN CLARIFICATION THE FOLLOWING POINTS WERE MADE :-

(A) THE FIGURE OF C31M WAS THE ESTIMATED COST OF THE REDUCED

GARRISON IN A REPRESENTATIVE YEAR, AFTER THE REDUCTION HAD BEEN ACHIEVED: IN PRACTICE, ESTIMATED COSTS WOULD VARY SOMEWHAT FROM

YEAR TO YEAR.

(B) THE FIGURE OF £31M WAS AT 1974 LONG TERM COSTING PRICES, THAT 13 AT THE PRICE LEVEL OF SEPTEMBER 1973: AN UPDATING OF THE FIGURE TO SEPTEMBER 1974 PRICES (THE PRICE BASIS FOR UK DEFENCE ESTIMATES 1975/76) WAS NOT YET AVAILABLE. THE INDICATIONS WERE THAT UPDATING MIGHT SHOW AN INCREASE OF 15-20%.

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