TNAG-0541-FCO40-636-Strength-of-garrison-in-Hong-Kong-1975 — Page 93

HOFO #21/03

PP F C O

VED

PICS. No.52

→→ JUL1975

Mr. O'KEEFFE. HKIED.

ADVANCE COPY

202)

GR 180

CYPHER/CAT A

FM HONG KONG 030810Z

SECRET

INKKIOLL

TO PRIORITY F C O TELNO 648 OF 3 JULY.

FROM DAVIES FOR O'KEEFFE.

MY LETTER SCR 5/62 OF 18TH JANUARY TO STUART.

DEFENCE COSTS AGREEMENT: NAVY.

NEXT

LAST REF.

27

REF.

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WE ARE STILL CONSIDERING THE NAVAL ELEMENT IN THE EVENTUAL MIX ON THE BASIS OF PARA 23 OF THE WORKING PARTY'S REPORT ON THE GARRISON. WE WOULD LIKE MOD'S ADVICE ON THE FOLLOWING POINTS1

(1) IF MERMAID'S REFIT WERE TO BE UNDERTAKEN IN HONG KONG WHEN WOULD THEY RECOMMEND THE ACTUAL EXCHANGE WITH CHICHESTER SHOULD TAKE PLACE AND WOULD ANY CAPITAL EXPENDITURE ON CHICHESTER BE REQUIRED IN THE MEANTIME.

(2) HOW MUCH IS MERMAID'S REFIT ESTIMATED TO COST IN HONG KONG: WHAT IS THE BREAKDOWN OF COST UNDER THE MAIN ITEMS?

(3) AFTER ITS MAJOR REFIT HOW LONG WOULD MERMAID REMAIN FULLY OPERATIONAL WITHOUT REQUIRING FURTHER SIGNIFICANT CAPITAL EXPENDITURE AND WHEN WOULD NEXT MAJOR REFIT BE DUE?

(4) BY WHAT DATE DOES A DECISION ON REPLACMENT OF CHICHESTER BY MERMAID HAVE TO BE TAKEN.

2. WE BELIEVE THAT ESTIMATE OF POUNDS STERLING 2.5M IN COSTINGS OF GARRISON FOR REFIT OF MERMAID IN HONG KONG WAS BASED ON ESTIMATE OF AVERAGE COST OF REFITTING ONE OF HM FRIGATES IN A U.K. DOCKYARD AND IS THEREFORE LIABLE TO VARIATION. IN VIEW OF THIS UNCERTAINTY AND THE AMOUNT REQUIRED WOULD IT NOT BE BETTER FOR COST TO BE EXCLUDED FROM OVERALL COSTINGS OF GARRISON AND BE APPORTIONED SEPARATELY ONCE A FIRM ESTIMATE OF COST IS AVAILABLE OR ACTUAL

COSTS ARE KNOWN?

MACLEHOSE

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