SECRET
earlier this year. The annex to this letter shows
the reduced costing of the Garrison in 1971/72
and replaces the information that we gave you in
1969.
3. There are two points in relation to your
proposals on which we should be grateful for
clarification.
(a) Capital Works
You have suggested earmarking a maximum
of £2 million p.a. for non-recurrent
capital works which would remain the
property of the Hong Kong Government
and would be selected from works which
are agreed by them to be of potential
value to Hong Kong if no longer needed
for use by the Services.
Our under-
standing of this is that within an
annual contribution of £8 million there
would be a varying amount of up to
£2 million annually for capital works
of that description. Depending on what
is regarded as of potential value to
the Colony it would seem that the amount
could be appreciably short of £2 million
in some years but we assume that this
would not affect the overall amount of
the contribution and that, as in the
case of the existing agreement, there
could by mutual consent, be virement
between the capital and recurrent elements
of the contribution.
Perhaps you would
confirm that this is your intention.
(b) Minor Works and Maintenance
The existing arrangement whereby
Are
/the....
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