SECRET
cont'd
Mr A F Thorpe F 1 (Air) Room 0257
Main Bldg MOD
total
HMG were ready to accept £8.5 million as the very
minimum contribution to which they could reasonably
agree; this is particularly the case since (despite
the fact that the new agreement would be for five
years) such a contribution would do no more than
restore the situation (as regards the proportion of
costs which it would represent) which obtained when
the current contribution was negotiated in 1966.
Moreover a very substantial proportion of the expen-
diture would be local expenditure of direct and lasting
benefit to Hong Kong.
2.
Your para 10. We see no objection to the
principle contained in this proposal. However there
could well be less than £3 million of capital works
in some years and in those years we would expect the
balance to be made up in cash. In other words, if
the £3 million were represented in kind it would have
to be done in such a way as to provide no bar to
virement with the recurrent element of the contribution.
Send Wish
17/2
Mr R J Smith DOE
Lambeth Bridge
Hse
(12803) Dd.643296 150m 8/69 G.W.B.Ltd. Gp.863 (13541) Dd.643727 200m 12/69 G.W.B.Ltd. Gp.863
16 February 1971
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