L
confirmation
we would be, very grateful for your personal assegs-
after discussing
at with CBF if you think it desirable) of whatLOP
this is the right moment to begin, e-review under
that hoad with the other possibilities looming ahead
of us.
where as we under-
7. On the assumption that you are prepared for
discussions to go ahead the next question is how
we settle on a figure or formula, bearing in mind
the various options already considered as well
as other possibilities such as linking expenditure
to price indices. PSA estimate that to carry out
the existing programme an extra HK $80 M will be
needed by 31 March 1976 assuming that inflation
continues at its recent rate
stand that about IIK $30M was regarded as a minimum
contribution which Hong Kong might be prepared to
consider. It was recognised that other formulae
for discussions. were open to argument. There is a good deal of
complexity in the arithmetic and logic of these
various approaches and if you are agreeable we
would be happy for representatives of MOD and
FSA who will be visiting Hong Kong on 2nd May
under arrangements already made between MG and
CBF to review the capital works programme, to
enter into discussions with members of the
Hong Kong Government with the aim of reaching
a provisional agreement which would be subject
to ratification between us.
8.
incidentally, on looking through the files it
appears that no final copy of the Memorandum of
/Understanding
CONFIDENTIAL & PERSONAL
191143101 (79. 5/13 GIRLLA, Op.203