4

SECRET

10.

H.E. suggested and the Minister agreed that both

sides should now form working groups to discuss these detailed

matters. The Minister doubted whether there was much room

for manoeuvre on the release of land as the present plans were

already known to Unofficials. And if any prestigious sites

were to be released they would need to be reprovisioned else-

where at additional cost. He added that there was still some

ambiguity in the HK position, for example, the choice of a

frigate or 5 patrol craft. H.E. said that the decision had

been made, with much regret, for the patrol craft.

11.

It was agreed that two working parties should

be established, one to deal with land matters and the other

with the question of costing and inflation.

12.

A further plenary meeting was fixed for 11.30am

the following day.

ЈЕСК

SECKA.

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