CONFIDENTIAL
a. take credit for the £1.5M likely to be underspent on
capital account at the end of the present agreement period,
and the £1M or so held back on maintenance in response to Hong
Kong's interests.
b. uphold the line that details of the works programme,
and in particular its control procedures should, like other
operating procedures, be discussed only when an agreement on
essentials (namely the size, shape and sharing of the costs
package) has been reached.
C. make clear that should the financial ceiling for the
garrison be set so low as to impel a reduction of the capital
works programme, projects directed to the release of land
would have to give way to those essential to the support of
the garrison, and that the Memorandum of Understanding would
have to be revised accordingly.
SADEN
CONFIDENTIAL