SECRET
3. 1 AGREE THAT OUR OBJECT NOW MUST BE TO ENCOURAGE THE
UNOFFICIAL MEMBERS TO PRODUCE THEIR OWN. IDEAS AS TO WHAT WOULD
BE APPROPRIATE. I HOPE YOU WILL BE ABLE TO PERSUADE THEM TO
FOLLOW UP THE INVITATION IN PARAGRAPH 4 OF MIFT. FOR EXAMPLE
I THINK THERE WOULD BE A GOOD CHANCE OF OBTAINING AGREEMENT
HERE TO AN ESCALATING ARRANGEMENT WHICH PROVIDED A TOTAL OF
€42.5 MILLION OVER FIVE YEARS.
4. WHILE I WOULD NOT RULE OUT THE IDEA OF EXTENDING THE PERIOD
OF AGREEMENT, THIS IS NOT LIKELY TO FIND FAVOUR HERE UNLESS IT
OFFERS SOME INCREASE IN THE EXTRA TWO YEARS WHEN IT COULD PE
EXPECTED THAT THERE WOULD BE VALID GROUNDS FOR AN INCREASE ON
THE FIGURE OF £9.5 MILLION. I CAN SEE NO HOPE OF ACCEPTANCE OF
A SEVEN YEAR AGREEMENT AT THE LEVEL YOU SUGGEST IN YOUR TELNU 266.
5. IT IS TRUE THAT THE CAPITAL WORKS PROGRAMME AS IT STANDS AT PRESENT TAILS OFF AFTER 1974/75 BUT SOME C2.5 MILLION WILL REMAIN TO BE SPENT IN 1976/77 ON MARRIED QUARTERS ALONE (PARAGRAPH 7 OF
MY TELNO 43) QUITE APART FROM ANY OTHER CAPITAL PROJECTS THE
NEED FOR WHICH MAY BECOME APPARENT BY THAT TIME.
6. 1 AM VERY SORRY THAT I CANNOT GO AS FAR AS YOU MAY HAVE HOPED
IN SUPPORTING THE IDEAS OUTLINED IN YOUR TELMO 266. I KNOW THAT
YOU HAVE STRESSED THROUGHOUT THAT £8.5 MILLION WAS THE MAXIMUM
YOU MIGHT HOPE TO NEGOTIATE LOCALLY. THAT FIGURE WAS HOWEVER
ONLY ACCEPTED HERE AS THE VERY MINIMUM CONTRIBUTION TO WHICH
HMG COULD REASONABLY AGREE.
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MR DJ J BRACK TREASURY
MR A F THORPE FI(AIR)2 MOD
MR RJ SMITH DOE LAMBETH BRIDGE HOUSE MR PD HAIRNE MOD
MR R GEDLING. TREASURY
MR E STRETTON DOE LAMBETH BRIDGE HOUSE MR FH GWYNN MOD
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SIR 1 MONSON
SIR S TCKLINSON MR BOTTOMLEY
IR WILFORD
MR D A SCOTT MR ROSE
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