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CONFIDENTIAL.
COSTS OF THE PROPOSED GARRISON
1. The main components and the estimated annual average cost of the proposed garrison are as follows:
Component
Royal Navy
(a)
1 Frigate and Support
COST
75/76 Estimates
Sept 75/Estimates 76/7 Prices
£M
€M
HK XM
(b)
(c)
(a)
2.4
5 Patrol Craft and Support
3.1
Army
1 UK Infantry Battalion
3 Gurkha Infantry Battalion
1 Gurkha Engineers Field
Squadron (plus Training Wing) Logistic Support
WT
33
22.2
30.6
325
Royal Air Force
1 Helicopter Squadron and
Support
1.6
2.1
22
Works Services
5.0
5.5
59
Air Trooping
1.6
2.3
2
Sub Total
Frigate Refit
32.8
43.6
463
0.5
GRAND TOTAL
Rounded to
33.3
43.6
463
334
437
460
2. The figures in column (b) above are those which were discussed in OPD on 22 July. The Governor has stated that the maximum Hong Kong could pay would be about half of this or £17M which has been
eflected in Hong Kong Government forward projections of expenditure as HK $205.
3. The revised estimates in columns (c) and (d) above have been prepared at the request of the Hong Kong Government and, as well as updating the price base, they take account of real changes in cost and minor revisions in strength since discussions started early this
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CONFIDENTIAL.
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