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6.
The F.S. said that the discussions had confirmed
that the statement of working principles for financial arrangements would have to be considered carefully. This would be critically important for the amicable implementation
of the agreement over the years.
7.
7
The F.S. concluded that, though there was the
possibility of some marginal reduction, nothing that had been done in the working party would help to make a 75%
share of costs more acceptable to HK. There was not much
scope for getting the total figure down, although HK's worry over differential inflation had been somewhat reduced. Mr. Andrew agreed that the F.S. had given a full summary
of the procedures of the working party.
8.
!
The Minister of State asked what working figure
should now be used as a basis for further discussions in
the light of what the F.S. had reported. It was agreed that, with the pruning now in had, $450m could be used as a target
figure.
9.
H.E. then asked the C.S. to report on the deliberations
of the working party on land. The C.S. said that the group
had examined the possibility of the release of 5 pieces of land
in the urban areas:
a)
Gun Club Barracks:
b)
for various reasons this
would have to be retained.
Kai Tak: this would be a prime area for
release from the HK Government's point of
view. But the UK would only agree to this subject to two main conditions:
i)
that the helicopter squadron should
be reprovisioned at Sek Kong at an
estimated cost of $55m, and
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