9. The list of projects drawn up to illustrate how £15M might be spent
(by no means the whole remaining programme in Hong Kong) includes:-
a.
alterations to 3 barracks to 'accommodate new occupants;
two of these projects when complete will enable us to release
to the Hong Kong Government substantial sites in which they
have a strong development interest.
b. additional married quarters for the Army and RAF
C. improvements to two Gurkha barracks.
Most of these projects have not yet received financial approval.
10. The other works component of the proposed annual cost package of $33.5M
is maintenance (costed at £2M per annum). It seems likely that this figure would be
inadequate and £3.5M is now stated by PCA as required in 1976/77 per annum thereafte:
This will have the effect of increasing the annual cost of the present force package
by at least £1M. HKLF in making the original estimate, may have overlooked the
agency fee levied by the Hong Kong authorities for the services they provide
and the fact that it might not be possible to reduce the estate pari passu with
the reduction in force levels. (This point is being studied with a view to
resolving the matter in good time before the negotiations).
Operation of Proposed Agreement
11. There are indications that the Hong Kong authorities are every bit as
concerned as before to maintain the presentational benefits of the works
content of whatever contribution they agree to make. They have displayed a
desire to establish as part of the negotiation itself machinery to agree a
works programme and to ensure that it does not fall below a specified minimum
level.
& CONFIDENUETA