TNAG-0543-FCO40-638-Strength-of-garrison-in-Hong-Kong-1975 — Page 119

TAC

COMSDENATAL

HONG KONG DEFENCE COSTS NEGOTIATIONS OCTOBER 1975

COSTS OF THE PROPOSED GARRISON

BRIEF D

1. The main components and the estimated annual average cost of the proposed

garrison are as follows:

Component

(a)

Royal Navy

Sex Jet prices 75/76 Estimates

£m (b)

1 Frigate and Support Frigate Refit

2.4

0.5

Army

1 UK Infantry Battalion

3 Gurkha Infantry Battalion

1 Gurkha Engineers Field

COST

Sept 75/Estimates 76/7 prices

£m (c)

HK$m

(a)

Squadron

(plus Training Wing)

22.2

Logistic Support

Royal Air Force

1 Helicopter Squadron

and support

1.6

Works Services

5.0

Air Trooping

1.6

Total

33.3

39.27

453.07

Rounded to

331

397

450 7

2.

The figures in column (b) above are those which were discussed in OFD on 22

July. The Governor has stated that the maximum liong Kong could pay would be about

half of this or £17m which has been reflected in Hong Kong Government forward projec-

tions of expenditure as HK % 205m.

3.

The revised estimates in columns (c)+(d) above have been prepared at the request

of the Hong Kong Government and, as well as updating the price base, they

COVEDENTIAL

CONFIDENTIAL

$