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CONFIDENTAL
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Colonial Secretariat, Lower Albert Road,
HONG KONG.
5th March 1974
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Ry R to me les
fus Defence Dept
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(81)
Review of the Hong Kong Defence Cont ribution 1971 - 76
No doubt you are aware of the recent visit by the Quarter Master General, Sir William Jackson for informal discussions about the contribution for capital works to which the memorandum of understanding forwarded in Michael Laird's letter HKK 10/9 of the 11th November 1971 referred.
During the course of the discussions with
Sir William officials here agreed that a price increase of 50% has occurred. In the se circumstances the Hong Kong contribution to capital works requires to be reviewed in accordance with clause 3(i)(a) of the memorandum of understanding.
We were told by the Quarter Master General that our contribution to the capital works programme will be exhausted by March 1975. We also understood that unless further funds are provided it will not be possible to let some contracts which are in an advanced stage of preparation and must be awarded from May onwards if the existing momentum in the building programme is to be maintained. was a point to which the QMG attached importance.
This
We understand also that it is the intention that a team from the Ministry of Defence, Department of Environment and the Office should conduct the negotiations in Hong Kong and would be authorised within the terms of its brief to agree the amounts of any supplementary contribution, We welcome this proposal and the date suggested by the QMG of mid April to early May would be convenient.
Would you please confirm that it is the intention to review the Hong Kong contribution to the capital works programme on the above basis?
Your ever buin
(L. M. Davies)
Secretary for Security
C.S. 143
A. C. Stuart, Esq, CPM,
Foreign and Commonwealth Office,
LONDON S. W. 1.
CONFIDENTIAL