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10.
(a)
would in fact be completely responsible for
all maintenance and minor works over the
period of the agreement, no matter what the
cost.
There could be virement in capital
expenditure as between one year and another
(but not between capital and recurrent
expenditure).
Certain features of the above proposals deserve
special attention:
(1) they cover a period of seven years; the
Governor attaches importance to this longer
period as being a selling point in
(2)
presenting the proposals to his unofficial
advisers.
the Hong Kong Government would accept
responsibility for meeting the whole of the
cost of the capital works programme over the
seven year period (this brings the total
estimated cost of that programme up to
£19.6 million); and if capital works costs
rose during the period they would accept all
such costs up to an increase of 50%. The
Governor is taking a calculated risk here;
if costs rose substantially but without
reaching the 50% mark, then Her Majesty's
Government would gain very substantially from
the arrangement.
(3)
there could not be virement as between
capital and recurrent expenditure (for
which the Ministry of Defence have pressed as
/a safeguard
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