CONFIDENTIAL
It is a fact that a number of I of E inspections hold the pros- pect of not inconsiderable savings in both uniformed and civilian manpower resulting from the various redeployments, introduction of new equipment, etc. Officials are not unnaturally inclined, when faced with agreeing the quarterly defence contribution, to seek assurance that manpower levels are being maintained. The climate of such discussion causes me no concern that the Services will not continue to be allowed to organise their manpower resources in accordance with normal domestic practice.
On the civilian labour front, I realise that, as has recently happened, Hong Kong can claim no exemption from any review of civilian numbers. Actual numbers employed, however, are being pruned below the levels expressed in the MOU to the extent that any further reductions would mean the employment of more Servicemen on equivalent tasks at vastly increased expense.
I am grateful for your assurance that Hong Kong's interest will be considered in the context of developments in Brunei. hope- fully my impending visit to Brunei will give some indication of local thinking on the latest FCO proposals.
Yours missiles,
John Virch
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CONFIDENTIAL
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