TNAG-0544-FCO40-639-Strength-of-garrison-in-Hong-Kong-1975 — Page 9

8508 D.073938 300M. 11/74 Cr.P.C. Gp.839/3

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Distribution :-

[TEXT]

Files

HKIOD

<

Defence Dept

SWPD

Mr Male

Mr Thomson

Sir D Watson

PS/Lord Goronwy-

Roberts

PS

Copies to :-

Mr Ward, DS6, MOD Mr Hansforá,

HM Treasury

Mr Bryers,

Cabinet Office Mr Aggleton, PSA/DOE

201415

Your telno. 1144: Defence Costs.

and

your sadd

1. Your para. 2A. Jones left a revised breakdown of

costs_together with the results of our examination of possible further economies. Ha BF's letter of

See also

4 November, explained the changes from the earlier costs analysis. Since then costs have been reduced to HK$454 million after reassessing the costs of Navy. bet say what is personnel and Army LEP. t We cannot specify the further changes necessary to reduce the total to HK$450 million, but this should be achieved by normal staff inspections and financial scrutiny coupled with probable savings from the Headquarters relocation. Hong Kong's financial contribution under the new agreement will be based on the assumed figure of HK$450 million and we

will be made sbell certainly make every effort to get down to this figure soon as possible. MOD assume that you will be

content with this and that no further joint work will be

/necessary