CONFIDENTIAL
Hong Kong Department
N J Smith Esq
Department of the Environment
Lambeth Bridge House
LONDON SE
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930 8440
1412
26 August 1971
141
135
1. Will you please refer to Brack's letter to you of 23 August about the Hong Kong defence contribution.
2. We have no reason to suppose that we should harm ourselves tactically by agreeing to the recommendations in your letter to Brack of 18 August, although we cannot be sure of what attitude would be adopted by the Unofficial Members of the Hong Kong
The Governor himself Executive Council and Finance Committee. hus always stressed the importance of devoting as large a proportion as possible of the Hong Kong contribution to local expenditure on capital works; and as you know he would be quite happy 17 as part of their contribution, Hong Kong were to pay for the whole of the capital works programne,
3. Is there not a possibility that by hanging fire on your recomendations we might likewine damage our position if, as a result, it proved impossible to complete that programme within the period of the agreement?
L
I am copying this letter to Brack and Thorp.
AW Gaminara
CONFIDENTIAL
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