TNAG-0617-FCO40-765-Strength-and-cost-of-UK-armed-forces-stationed-in-Hong-Kong-1977 — Page 35

CONFIDENTIAL

f. That the detailed characteristics of any replacement vessels and

the question of where they should be built (which will affect cost)

would be left to later discussions.

g.

That the Hong Kong Government would continue to pay in the forseeable

future, as they will from 1 April 1978, 75% of the support costs of

the Squadron.

19.

We would be grateful if Ministers, given the political and financial

factors outlined in this paper, would agree that formal discussions should

at a convenient time be opened between the MOD and the Hong Kong Government

on the lines suggested in para 16 above. These discussions would of course

be ad referendum to Ministers who would be consulted again before final

decisions were taken on proceeding with the purchase of replacement craft

for the Hong Kong Squadron.

8 CONFIDENTIAL