TNAG-0543-FCO40-638-Strength-of-garrison-in-Hong-Kong-1975 — Page 56

I

CONFIDENTIAL

3.

Similar but smaller increases in pay and

allowances for Gurkhas and locally recruited Chinese,

both uniformed and civilian (15% - 20%),

d. An increase in UK equipment costs of about 20% and

air charter costs by about 40%.

e.

The falling value of sterling against the Hong Kong

dollar. The average September 75 market rate was

10.55 dollars to the S as compared with about 11.8 in October

74 when the earlier estimates were drawn up, This is a

reduction of over 10%.

The real (constant price) changes in garrison costs are

much less significant. The more important are:

Revision of the cost of the Naval presence DOW

based on 5 patrol craft without replacement and therefore

excluding frigate refit costs.

b. The omission of works costs in Nepal fron earlier

estimates (£0.4m).

c. A reduced estimate of receipts from the Hong Kong

medical authorities in respect of civilian use of the

BMH (20.2m). The earlier figure was an arbitrary

first assessment.

2.