CONFIDENTIAL
PARA 4
(B) WE SUGGEST DELETE LAST SENTENCE AND SUBSTITUTE:
)'WE
''THE FIGURE SO ADJUSTED WILL BE THE HONG KONG
COVERNMENT'S ESTIMATED CONTRIBUTION FOR THE FOLLOWING
FINANCIAL YEAR,''
IT IS DIFFICULT TO COMMENT ON THIS UNTIL WE HAVE THE
DETAILS TO BE INCLUDED 111 PARA 2. OUR INITIAL COMMENTS
ARE AS FOLLOWS:
(A) THE EXISTING STATEMENT OF WORKING PRINCIPLES'' AGREED
FOR THE CURRENT AGREEMENT HAS WORKED WELL IN PRACTICE AND SHOULD BE RETAINED SUBJECT TO MODIFICATIONS TO DETAIL TO BRING IT UP TO DATE.
(B) WOULD IT NOT BE CLEARER TO INCLUDE PROVISION FOR MINOR
WORKS AND MAINTENANCE IN A SEPARATE PARAGRAPH IN THE AGREEMENT AS WAS DONE IN PARA 3(11) OF THE CURRENT AGREEMENT?
(C) THE PROVISION FOR MAINTENANCE AND MINOR WORKS INCLUDED
IN THE HONG KONG GOVERNMENT ESTIMATES WOULD BE BASED ON
CURRENT COSTS AND THE WORK WOULD BE UNDERTAKEN TO NORMAL
U.K. STANDARDS AND SCALES.
.(D) SO FAR AS CAPITAL WORKS ARE CONCERNED, WE UNDERSTAND
YOUR WISH TO COVER YOURSELVES AGAINST ANY UNDER-SPENDING:
FOR OUR PART WE ARE CONCERNED TO PROVIDE AGAINST UNDER-
AUTHORISATION. WE WISH TO ENSURE THAT ADEQUATE FUNDS TO
FINANCE THE CAPITAL WORKS PROGRAMME REQUIRED BY THE
GARRISON ARE AGREED AND REGULARLY SPENT. SEPARATE
PROVISION FOR CAPITAL WORKS ALONG THE LINES OF THE
CURRENT AGREEMENT SHOULD RESOLVE THESE NOT NECESSARILY.
CONFLICTING REQUIREMENTS.
PARA 5 (A) WE COULD NOT ACCEPT WITHOUT QUALIFICATION THAT THE LESS
THAT IS SPENT ON CAPITAL WORKS THE HIGHER THE PROPORTION
OF RECURRENT EXPENDITURE HONG KONG WOULD BEAR. WE WISH
WORKS TO BE MAINTAINED AT, OR ABOVE, A SPECIFIED MINIMUM LEVEL (SEE ALSO COMMENTS ON PARA 4(D) AND ON PARA 6). (B) THE QUESTION OF CURRENCY WILL BE THE SUBJECT OF A
SEPARATE REPLY.
PARA 6
WE ARE NOT SURE THAT WE UNDERSTAND THIS PROVISION. THE EXISTING ARRANGEMENTS IN PARAS 3(111) AND 3(VI) IN THE
CURRENT AGREEMENT HAVE WORKED WELL AND WE WOULD PREFER
TO RETAIN SOMETHING ON THESE LINES, IT WOULD, WE THINK, BE NECESSARY TO AGREE A PROGRAMME OF CAPITAL WORKS AND
AS STATED ABOVE ENSURE THAT THE FUNDS PROVIDED FOR THIS
/ ARE
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CONFIDENTIAL