TNAG-0545-FCO40-640-Strength-of-garrison-in-Hong-Kong-1975 — Page 97

IMMEDIATE

CYPHER/CAT A

GRPS 650

FM HONG KONG 010400Z

CONFIDENTIAL

RECEIVED IN

དམ༢།༢ལ་), 5

51

TOP COPY

1 DEC 1975

HKIL 10/1

406

CONFIDENTIAL

TO IMMEDIATE F C O TEL NO 1202 OF 1 DECEMBER.

FOLLOWING FOR ANDREW FROM DAVIES. PARA 7 OF OUR TELEGRAM 1187 ~

OF 25 NOVEMBER.

DEFENCE COSTS

WORKS SERVICES.

AEF.

(393)

WE HAVE BEEN CONSIDERING WITH HQBF AND PSA HERE THE WORKS

SERVICES ELEMENT IN THE COST OF THE GARRISON AND IN THE DRAFT MOU.

WE HAVE TAKEN THE OPPORTUNITY OF DISCUSSING THIS WITH RONEY FROM

PSA AND ALSO COLONEL KENDRICH.

2.

BOTH PSA AND PWD FEEL THAT, EVEN IF PROVISION IS MADE FOR MAINTENANCE EXPENDITURE AT A LEVEL, AT LEAST IN THE EARLY YEARS, HIGHER THAN THE RESTRICTED PROVISION FOR THE CURRENT YEAR, THE MAINTENANCE COMMITMENT COULD (ON THE ASSUMPTION THAT THE TWO MAJOR REPROVISIONING SCHEMES AT SEK KONG AND IN TAMAR PROCEED AS PROPOSED BY THE JOINT WORKING PARTY) CONTINUES AT A REDUCED LEVEL OF EXPENDITURE THEREAFTER. HOWEVER, BOTH DEPARTMENTS ARE STILL

WORKING ON THE ESTIMATES.

3. AT THE SAME TIME, BECAUSE OF THE ON-GOING COMMITMENT IN THE

CAPITAL WORKS PROGRAMME AFTER THE END OF THE CURRENT AGREEMENT AT

31.3.1976, REDEPLOYMENT OF UNITS RESULTING FROM THE REDUCTIONS IN

THE GARRISON AND EARLIER UNDERTAKINGS ON THE RELEASE OF LAND (E.G. AT SHAMSHUIPO AND ARGYLE STREET), THE PROGRAMME OF NEW WORKS WILL

REQUIRE A HIGH LEVEL OF EXPENDITURE IN THE EARLY YEARS OF THE NEW

AGREEMENT WITH A GRADUAL TAPERING OFF.

4.

THE AGREED COST OF THE GARRISON OF DOLLARS 450 M. INCLUDES

DOLLARS 59 M. A YEAR FOR WORKS SERVICES. THE REQUIREMENTS OF BOTH

CONFIDENTIAL

/CAPITAL