TNAG-0536-FCO40-631-Strength-of-garrison-in-Hong-Kong-1975 — Page 109

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5.

In answer to questions from Mr. Davies, Mr. Jones explained that:

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) Capitation rates had been used to calculate

personnel costs. Apart from the basic pay of U.K. Servicemen and U.K. based civilians, where world-wide averages had been used, all costs are calculated from the rates appropriate to Hong Kong. It is assumed that all units are fully manned. If a unit fell below establishment, the shortfall would be reinforced from elsewhere, as had happened previously. The capitation rate is applicable to all three services, including Gurkhas.

) Army equipment expenditure covered new equipment,

ammunition and spare parts. New equipment costs including Clansman radios (capital cost 26m.) had boen amortised over a ten-year period and included in part in the annual totals. A single figure relating to the entire garrison was included because it is difficult to attribute equipment expenditure to individual units and a breakdown was provided of army equipment costs.

(c) Cost of rations, accommodation, stores, water and

electricity etc. are basically proportional to the number of men at post.

Turning to Annex B of the Defence Review Team's paper on costs of the proposed garrison, the Navy breakdown of budgetary costs, it was explained that:-

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(a) The frigate is costed by estimating complement

officers + 166) pay, fuel, maintenance, spare parts, plus, in one year, cost of a normal 5 year refit for a frigate for operations in Hong Kong - for identifying defects and carrying out minor improvements. More details were needed on maintenance, but HMS Chichester is becoming increasingly expensive to maintain, and is due to be scrapped in 1978/9. HMS Mermaid was proposed as a replacement, but would need a refit first following service in Singapore. She would be cheaper in the long-term, and £75,000 for her satellite terminal would not be included in the cost. Furthermore she would not be as active in fleet exercises as Chichester, since naval presence in this theatre will be considerably reduced. Mr. Davies said that if the Hong Kong Government is paying more for the frigate, it would expect to examine its role and functions more critically.

(b)/...

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