9.
The Minister said that he had referred the proposed
formula on Hong Kong's contributions to London but he feared
that the additional requirements now made would jeopardise an agreement. He was also concerned that opinion might harden in London if he returned without an agreement and the present formula might be eroded if negotiations were prolonged.
10. The Governor commented that he had not changed his position in asking for the release of land to be linked to the higher contributions now proposed. His opening statement had been solely concerned with an equal sharing of costs. Since then the Hong Kong Government had made a significant concession
and wanted something in return.
11.
The Minister of State said that, if an agreement was to
be reached, he felt confident that there would be no difficulty in the UK meeting the time-table proposed for the release of Service land. At Kai Tak it might be possible to release 17 acres as early as 1 April 1976 if this was considered helpful in presentational terms. At Victoria Barracks he was sceptical as to whether the Hong Kong Government would be able to relocate the facilities within 3 years but he foresaw no impediment
on the UK side.
12. In discussion of the land release proposals it was agreed that Flagstaff House would not be demolished, although future Service commanders might prefer to move to HMS Tamar.
It was also suggested that it might be sensible to retain a 5 acre site east of the present site at Victoria Barracks but the Financial Secretary emphasised that this was essentially a planning question. At Kai Tak the Hong Kong Government envisaged retaining some 10 acres for the Hong Kong Auxiliary Air Force and it might be possible to keep a minimum RAF presence on the same site. On the other hand it might suit both sides best if the RAF were to leave Kai Tak altogether. The Hong Kong Government acknowledged that the planning and
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