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9.
10.
a.
Fuller utilization of the BMH.
The Possibility of the allocation at Service schools of additional places for school children, other than those for entitled Service families.
b.
The Hong Kong team asked what consideration BMG was proposing to give to:
a.
Meeting the costs, after 1 April 1976, which arise out of the transition from the present to the future garrison as a result of factors not attributable to Hong Kong.
b. The continued collection of the UK rates of income tax from the Garrison in the event of an agreement involving a very substantial increase in the Hong Kong contribution.
The MOD UK Team accepted responsibility to look into and reply to these
matters.
STAGE 3 BROAD IMPLICATIONS OF GARRISON COSTING LESS THAN £41M
11.
AUS (GS) opened this stage by reminding the meeting that:
a.
In making the reduction from the present Garrison to the proposed Garrison the cost of the Garrison had been already brought down from £50M to £41M. This had been achieved by, wherever possible, substituting either Gurkhas or Chinese servicemen for UK soldiers. However, due to the training and associated difficulties, it would not be possible to carry this process further. There was, therefore, no possibility of having a Garrison of entirely Gurkhas and Chinese.
It was not possible to make any significant further saving on the cost of the proposed £41M Garrison.
b.
C. If the replacement costs of the patrol craft were also added to the total costs the costs of the Garrison would rise significantly in the last 3 years of the next 5 year period.
d. If the "teeth" of the Carrison were to be further reduced, there would not be a pro rata reduction in support costs.
The Gurkha Engineers would no longer be viable at less than two squadrons.
The removal of the remaining UK Infantry Battalion 2nd Artillery Battery would still leave some 1500 white faced soldiers in the Garrison.
f.
g. In considering any other hyphothetical force levels or mix of forces, it should be remembered that 5 2/3 major units is, in the professional view of the CBF endorsed by the Chiefs of Staff, the minimum effective force for Hong Kong.
h.
It would be possible for any other size of Garrison, which the Hong Kong Government may wish to propose, to be costed. However this would take several weeks to match the detail and accuracy of the data already provided for the £41M Garrison.
Illustrative Examples
The proposed (£41M) Garrison could be further reduced in cost by significant cuts in the teeth arm elements of which the following are illustrative examples:
12.
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