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(ii) if there were an increase or decrease in the
size of the garrison by more than one major
army unit or the equivalent, or
(iii) if the economy of Hong Kong were to suffer such
a serious adverse change that the continued
payment of a contribution at this level could
be shown to be an unreasonable burden on the
Colony's finances.
(c) The £2.2 million per annum for maintenance and minor
works would be a notional figure only; the Hong
Kong Government would in fact be completely
responsible for all maintenance and minor works
over the period of the agreement, no matter what
the cost.
(a) There would be virement in capital expenditure as
between one year and another.
2. I told the other Departments that we no longer wished to
pursue the Governor's proposal to place a lump sum interest
free at HMG's disposal. The Treasury were not surprised at
this reaction. Apparently the Bank of England are not at all
keen on the idea although the Treasury themselves were ready
to consider it further.
3.
The MOD were most reluctant at first to move at all from
the figure of £8.5 million. They were particularly concerned about the suggestion that virement between capital expenditure and recurrent expenditure should be replaced by virement in
the capital works programme as between one year and another.
/Their
2.
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