TNAG-0537-FCO40-632-Strength-of-garrison-in-Hong-Kong-1975 — Page 157

SECRET

SECRET

UK EYES A

UK EYES A

(a) an increase in the size of the UK's contribution to the cost of

the garrison;

(e) an increase in the size of Hong Kong's contribution to the cost of

the garrison.

A summary of the discussion that took place under these heads during the

formal sessions is given in the following paragraphs.

Trimming the estimated costs of the "reduced" garrison

9. The Hong Kong representatives accepted that the costs of the "reduced"

garrison incorporated major economies in command structure and in the support

area. But they did not conceal their belief that this process could be

carried further. The UK team explained their reasons for believing that

further rationalisation would not yield major economies. But they undertook

to re-examine the estimated costs of two items (air trooping, and the refit

of the frigate MERMAID); they agreed in principle that a joint examination

should be made of possible greater integration of defence and civilian

medical and educational organisations in Hong Kong (though of presentational

value, savings from this were not expected to be great): and they pointed

out that further savings might arise as a result of normal establishment

reviews and other detailed examination of the new structure. The UK

representatives explained that total savings made possible by all these

processes would be unlikely to bring the average annual cost of the garrison

below £40M. There was criticism by the Hong Kong representatives of the

apparently high capital cost of the new patrol craft. It was agreed that the

provision of these craft (whose cost is outside the average figure see

paragraph 7(a) above) should be set aside for separate consideration.

Removing from the costing elements not attributable to Hong Kong

10. The UK team undertook to consider whether all or part of the costs of

the JSIS and the Chinese Language School should be removed from the costing

on the grounds that they served the interests of the UK rather than Hong

SECRET IS A

UK