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TO PRIORITY FCO TELNO 694 OF 23RD SEPTEMBER INFO ROUTINE HONG KONG GOVERNMENT OFFICE LONDON
MY TELEGRAM NUMBER 668.
DEFENCE CONTRIBUTION.
I HAVE LEARNED THAT PART (PROBABLY BETWEEN TEN AND TWENTY PER CENT) OF THE PROPOSED POUNDS STERLING 17 MILLION FOR CAPITAL WORKS IS LIKELY TO BE SPENT ON THE PURCHASE OF EXISTING BUILDINGS FOR MARRIED QUARTERS RATHER THAN ON NEW CONSTRUCTION. 2. PURCHASING SHOULD BE CHEAPER, PARTICULARLY AT A TIME WHEN BUILDING COSTS HAVE RISEN. TO THE EXTENT IT TAKES PLACE, THE EFFECT SHOULD THEREFORE BE NOT ONLY TO KEEP DOWN THE COST OF THE CAPITAL PROGRAMME BUT ALSO TO STABILIZE COSTS IN THE EVENT OF WILDING PRICES CHANGING FURTHER. THIS SEEMS ANOTHER REASON FOR MAKING THE CONCESSION URGED IN MY EARLIER TELEGRAM: AND I VERY MUCH HOPE YOU MAY SOON BE ABLE TO AGREE TO IT,
FCO PASS ROUTINE HK GOVT OFFCIE LONDON
TRENCH
FILES
HKD
FED
DEFENCE D
FRAD
A & T D
DIGD
PS
PS/MR ROYLE
PUS
SIR L MONSON
MR ROSE
MR WILFORD
[NO PASSING ACTION TAKEN ]
SECRET
ADDITIONAL DISTRIBUTION H.K.D.C.
RECEIVED IN
REGISTRY No. 1 23 SEP 1971
4KK 15/9
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