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THIRD REPORT FROM THE EXPENDITURE COMMITTEE
costs ceiling was made by the Hong Kong government (Q 2) and that the naval presence will in future cost £3.3 million compared with £7.7 million previously (Q 3). This does not mean that in different economic circumstances, the Hong Kong Government and the Commander British Forces would not wish to have a frigate available for at least a part of the year to perform the "big gun, deep water" task for which patrol craft are not fitted. With the frigate's withdrawal for the foreseeable future, the Navy will be unable to meet any substantial threat at sea, to operate in adverse sea conditions, such as in a typhoon, or sail at several days distance from harbour (Q 38-9). In other respects changes to be made bring the naval presence in line with a task much reduced by the general withdrawal east of Suez. The patrol craft themselves will need to be replaced within ten years and early consideration should be given to the replacement craft. Given the loss of the frigate, it might present an opportunity to experiment with a new class of patrol vessel equipped with a ship-to-ship missile (Q 41–2).
13. The Sub-Committee in Hong Kong also learnt of defects in the Gemini inflatable boats issued for use on the patrol craft based at HMS Tamar. We have been informed that the problems experienced in Hong Kong have equally affected other such Geminis in service with the Royal Navy. Delays in replacement are in part explained by a slow production rate and the increased service requirement (see Appendix 12 p 40). We trust that similar problems will be avoided when a new type of Gemini is introduced later this year or early next year.
14. The RAF presence in Hong Kong involves two principal tasks; the maintenance of air transport and trooping operations, and the provision of a medium lift capability for the Army and police with a squadron of Wessex helicopters. Since it is now no longer envisaged that a major RAF presence, including fixed wing aircraft, will be deployed in Hong Kong, the need to retain extensive and inevitably costly facilities at RAF Kai Tak is no longer very great. In these circumstances, the Government have announced that the land currently occupied by the Services at RAF Kai Tak will be released (Q 2). We support this step for several reasons. The land has been given up as part of the Defence Costs Agreement and as such has contributed to achievement of a most satisfactory agreement. It was also more and more difficult to justify the continued retention of a prime site of 120 acres underutilised by the Services in the heart of the Colony while there remains a chronic shortage of building land for industry and housing. A further benefit may also accrue if new facilities are provided for RAF helicopters flying at Sek Kong as proposed, since the spread and scale of facilities required may not be so great and may be more economically serviced. Future trooping and servicing arrangements for transport aircraft will be based at the adjacent civil airport at Kai Tak. It is planned to carry out the revised RAF tasks with a substantially smaller number of Servicemen.
15. We can understand the disappointment of the RAF that it has become necessary to withdraw from an old established airfield with excellent facilities. Nonetheless, this is clearly a move which will allow economic performance of their task and has been a necessary element of the Defence Costs Agreement. We are concerned about certain operational difficulties faced by the RAF in operating the Wessex helicopters in Hong Kong. There was a general feeling that, the restriction of flying hours applicable to the Wessex worldwide was
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