TNAG-0758-FCO40-962-Strength-of-UK-armed-forces-stationed-in-Hong-Kong-1978 — Page 107

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CONFIDENTIAL

3.

11.

REPLACEMENT

Frigate.

The Chichester is coming to the end of its economic life and is due for replacement in 1977/78. The replacement offered is H. M. S. Mermaid which is the only suitable and available frigate for Hong Kong. If she is not used in Hong Kong she will be scrapped and once this happens it will never again be possible to have a Frigate Guardship at the low cost at which H. M. S. Mermaid is being 'offered.

12. The real capital cost of a frigate replacement would of course be much

larger but Mermaid has been offered for the cost of her re-fit. This is estimated

at

(1)

(2)

£2.4 m. based on the cost of a normal refit of an unmodified Type 61 frigate in a U. K. dockyard but a more accurate estimate can only be made when the ship has been surveyed in 1977.

£1.5 m. plus £0.2 m. for U. K. planning and supervision of a refit carried out in Hong Kong. (Commodore, Hong Kong has recently re-assessed this figure and now believes a local refit, taking approximately five months - as opposed to ten months used in the U. K. quotation should cost no more than £1 m. in total.)

K

We have suggested that the cost of the refit should be excluded for the time being from the costs of the garrison with actual costs at the time being shared on the same basis we would however still need to budget for the refit and for purposes of comparison it should perhaps remain in the totals.

13. Although there is financial, economic and political benefit in arranging for the refit to be carried out in Hong Kong, this could produce complications of timing the MOD's present intention is for a refitted Mermaid to replace. Chichester early in 1978: if the refit were to take place in Hong Kong, MOD has proposed that Chichester would be replaced by the Mermaid by March 1977 but the Mermaid would then be in dock for something between 5 and 10 months for the refit. MOD has been asked to reconsider these proposals.

14. The proposed refit is a "normal" refit as opposed to a "major" refit, A normal refit is usually carried out every 3 years but, because of limited operating patterns, this could be extended to up to 10 years in Hong Kong with a 6 week docking every 15 months. MOD have some reservations on this point and are unable to guarantee that a further refit will not be necessary eventually. A normal refit therefore is inevitable at the beginning of the first five year period, and it seems possible that a further similar refit will be required by the end of the second quinquennium. The main dictating factor is the engine running hours. After 12000 hours engines require a major overhaul lasting approximately 6 months.

G.F. 316

İCONFIDENTIAL

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