布政司署
香港下亞厘畢道
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GOVERNMENT SECRETARIAT
LOWER ALBERT ROAD
HONG KONG
3)
RECLAVED IN
REGISTRY NO, 51
08 MAR 1977
DKK062
62/2
25th February, 1977
Replacement R.N. Patrol Craft
In the course of the negotiations leading up to the Defence Costs Agreement there was some discussion on the composition of the Naval element of the garrison but in the end it was decided that the frigate would be withdrawn and the 5 patrol craft would remain.
The cost of the garrison under the Agreement was therefore calculated on the basis of the retention of the 5 patrol craft and although we knew we would need to consider their replacement during the currency of the agreement we decided with MOD that no item of cost should be included in the estimates for their replacement.
In informal discussion in December 1975 Robert Andrew of MOD and I agreed that, if it became necessary to incur costs on replacement during the Agreement MOD would expect them to be shared on the same basis as costs then incurred under the Agreement. This informal discussion was later recorded in an exchange of letters, of which copies are enclosed.
I now write to tell you that we have reached the stage in which the Captain-in-Charge, Hong Kong has produced a paper entitled "An outline staff target for the replacement of the patrol craft" with which we agree and this has been forwarded by the CBF to the MOD. I thought you would like a copy of the paper and the covering letter in case MOD refer to its existence. Copies are enclosed.
The intention is that, before detailed design work begins, MOD (Nav.) will provide us with a "Shopping List" with costings (see paragraph 34 of the paper).
This is
J.A.B. Stuart, OBE,
Hong Kong Department,
Foreign and Commonwealth Office,
London.
SECRET
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