TNAG-0542-FCO40-637-Strength-of-garrison-in-Hong-Kong-1975 — Page 167

CAB020 21/0824 23300605

FOR CAB

ROUTINE 210705Z AUG

FROM TPS HONG KONG

то

MODUK

CONFIDENTIAL

255/€

CONFIDENTIAL (NO SDL DIG EBW MODUK) DIG EBJ/EAA EBW(DIGS EBJ/ EAA INSERTED BY DCC) FOR HEAD OF F1 (AIR) AND DS1 UPDATING OF COSTS BY USE OF FIRST IT IS UNDERSTOOD THAT IT WAS AGREED DURING THE RECENT LONDON TALKS THAT THE COSTS WOULD BE UPDATED TO SEP 75 PRICES AS SOON AS POSSIBLE PD DESPITE THIS ASSURANCE CMM THE HONG KONG GOVT ARE VERY ANXIOUS TO SEE NOW WHAT THE FIGURES LOOK LIKE AT CURRENT PRICES PD YOU WILL SEE HOW STRONGLY THE GOVERNOR MAKES THIS POINT IN HIS TEL NO 797 OF 18 AUG TO THE FCO PD HK GOVT OFFICIALS ARE THEREFORE PRESSING TO USE THE INFLATOR NOW TO UPDATE THE COSTS PD THEY CONTEND THAT THIS WILL ENABLE THE BILL AT CURRENT PRICES TO BE SEEN AND ENABLE THE VALIDITY OF THE INFLATOR TO BE TESTED BY COMPARING THE RESULTS AGAINST THE UPDATED COSTS WHEN RECEVED FROM LONDON

FROM COMD SEC AND G FIN PD SUBJECT IS INFLATOR

SECOND PD WE HAVE BEEN ASKED TO ASSIST IN DETERMINING THE CURRENT

PAGE 2 RB MVAD 047 C ON FIDENTIAL

INDEX OF EACH INFLATOR CATEGORY OF COSTS PD AS WE ONLY HAVE A TO TAL BY SERVICE FOR EACH CATEGORY CMM WE CAN ONLY DO THIS WITH YOUR ASSISTANCE PD THE FOLLOWING REFERS TO EACH INFLATOR CATEGORY BY ITS SERIAL NUMBER IN THE ANNEX TO THE MOU CLN ALFA PD SERIAL ONE PD AS THIS IS A COMPOSITE FIGURE FOR ALL GRADES AND RANKS CMM BOTH UNIFORMED AND CIVILIAN CMM COVERING ALL FORMS OF PAY AND ALLOWANCES PAREN OTHER THAN LOA UNPAPEN WE CANNOT TELL THE EFFECT ON THE TOTAL OF AN INCREASE OF ONLY A SINGLE EMOLUMENT EG MILITARY PAY ON 1 APR PD CAN YOU ASSIST QUERY BRAVO PD SERIAL TWO PD WHILST THIS COVERS A MUCH NARROWER FIELD THAN SERIAL ONE CHM THERE IS A PROBLEM IN THAT WE DO NOT KNOW WHICH RATES WERE USED FOR THE SEP 74 BASE DATE PD CAN YOU PROVIDE THE CURRENT INDEX QUERY

CHARLIE PD SERIALS FOUR AND FIVE PD THE PROBLEM WITH LOA IS THAT INCREASES ALSO ENCOMPASS COMPENSATION FOR ADJUSTMENTS TO THE FF R PD IN ORDER THAT THIS CAN BE ADEQUATELY EXPLAINED CMM CAN YOU PROVIDE CURRENT INDICES FOR BOTH GROSS INCREASES IE IGNOIRNG FFR ADJUSTMENT CMM AND NET INCREASES IE HAVING REGARD TO FF JUSTMENT PDELTA PD SERIAL SIX PD CAN YOU PROVIDE MONTHLY INDEX OF WHOLESALE OUTPUT PRICES OF MANUFACTURED GOODS, IN-UK- FOR BP. 74-

IZORI OF DATINGA

D.S.1.

2 1 AUG 1975