TNAG-0479-FCO40-544-Strength-of-garrison-in-Hong-Kong-1974 — Page 147

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(C) THE MINISTRY OF DEFENCE WOULD AIM TO MAKE AVAILABLE TO THE HONG KONG GOVERNMENT AND TO CBF HONG KONG AS SOON AS POSSIBLE AFTER THE END OF NOVEMBER 1974 A DETAILED ESTIMATE OF THE COSTS OF THE REDUCED GARRISON FOR THE FIVE YEARS FROM 1976/77 ONWARDS ON A

YEAR BY YEAR BASIS AND AT SEPTEMBER 1974 PRICES. THIS ESTIMATE

WOULD STILL BE SUBJECT TO QUALIFICATION AND LATER AMENDMENT, SINCE

(1) THE RUNDOWN PLAN AT PRESENT BEING PREPARED BY MOD AND CBF

HONG KONG WOULD NOT BE COMPLETED AND APPROVED UNTIL EARLY 1975:

(11) IN CONSEQUENCE A FINAL COSTING OF THE LOGISTIC SUPPORT, AND OF THE WORKS PROGRAMME, AND OF THE OTHER ELEMENTS, WOULD NOT BE

POSSIBLE IN NOVEMBER: BUT IT WAS HOPED THAT SUFFICIENT PROGRESS IN

PLANNING WOULD HAVE BEEN MADE TO ALLOW REASONABLY RELIABLE ESTIMATES

TO BE MADE:

(111) SOME ELEMENTS OF THE COSTING E.G. OF THE PROVISION OF BOTH U K AND GURKHA AIRLIFT, WERE STILL UNDER STUDY, WHICH MIGHT NOT BE

CONCLUDED UNTIL AFTER NOVEMBER,

(D) THE FIGURE OF £311 MADE NO ALLOWANCE FOR THE CAPITAL COST OF

REPLACING THE HONG KONG PATROL CRAFT: APPROPRIATE ALLOWANCE WOULD

BE INCLUDED IN THE DETAILED COSTING AT (C), WHICH WOULD SHOW

SEPERATELY SIGNIFICANT EQUIPMENT CAPITAL COSTS FOR ALL THREE

SERVICES (IN FACT THE PATROL CRAFT WERE THE ONLY LIKELY ITEM). (E) THE HONG KONG GOVERNMENT WOULD BE EXPECTED TO PAY 75% OF THE

ACTUAL COST OF THE GARRISON OVER THE FIVE YEAR PERIOD OF THE NEW

AGREEMENT, THAT IS INCLUDING EXTRA COSTS ARISING FROM INCREASES

IN PAY AND PRICES DURING THE PERIOD.

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3. IN FURTHER DISCUSSION THE CONTENT AND COVERAGE OF THE FIGURE

OF £31M WAS EXPLAINED. IT WAS AGREED THAT A DETAILED BREAKDOWN WOULD BE SHOWN IN THE FURTHER ESTIMATE TO BE PROVIDED IN ACCORDANCE WITH PARAGRAPH 2(C) ABOVE.

4. THE FOLLOWING POINTS WERE ALSO MADE:-

(F) A WORKABLE ARRANGEMENT WOULD HAVE TO BE AGREED FOR THE CALCULATION OF THE ANNUAL CONTRIBUTION UNDER THE PROPOSED NEW

AGREEMENT.

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