TNAG-0545-FCO40-640-Strength-of-garrison-in-Hong-Kong-1975 — Page 47

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IMMEDIATE

GR. 320

CYPHER CAT/A

FM HONG KONG 050737Z

SECRET

DESKBY 050830Z

SECRET

SECRETOP

COPY

432)

TO IMMEDIATE F C O TELEGRAM NO 1228 OF 5 DECEMBER.

FOR O'KEEFFE.

PLEASE PASS FOLLOWING TO DAVIES FROM WIGGHAM.

RECEIVED IN

***DY 119, 51

- 5DEC 1975

HKILIO/1

DEFENCE COSTS: F C O TELEGRAM NO 933 OF 4 DECEMBER.

LAST

REF

426)

STATEMENT OF FINANCIAL PROCEDURES

MÉXI

REF.

1. WE HAD HOPED PROCEDURES WERE SELF-EXPLANATORY, BUT GOUGH AND

JENNEY HAVE HURRIEDLY PRODUCED THE ILLUSTRATION SET OUT IN PARA 3

BELOW. I TRUST IT ILLUMINATES AND DOES NOT CONFUSE.

1

PLEASE NOTE:-

2. A) THE BASE FIGURES ASSUME THE CHANGE OF AIR-TROOPING TO

STERLING AND ALL EQUIPMENT TO DOLLARS.

B) ALL FIGURES OF COST ARE IN MILLIONS.

C) FOR PURPOSES OF ILLUSTRATION ALL INFLATOR CATEGORIES PAID IN THE SAME CURRENCY ARE COMBINED: IN PRACTICE, EACH CATEGORY WOULD BE CALCULATED SEPARATELY.

+

D) THE M O U REFERS TO ''MONTH BY MONTH MOVEMENTS’’ (PARA 3) AND THE S F P (PARA 11(A) AND (B) TO CHANGES IN THE PRICE

LEVELS TO THE END OF THE PERVIOUS QUARTER. FOR THE PURPOSES OF THE ILLUSTRATION, THE (FOLLOWING WORD UNDERLINED) AVERAGE OF THE PREVIOUS QUARTER HAS BEEN USED. THERE IS NO DIFFERENCE

IN PRACTICE.

3. ILLUSTRATION OF CALCULATION SET OUT IN PARAS 11 AND 12 OF

STATEMENT OF FINANCIAL PROCEDURES :-

1. BASE DATE (SEP 75) FIGURES

SECRET

HONG KONG