9.
SPECKERET
The Governor said that in the absence of any reduction in the risk or limitation of Hong Kong's responsibility for inflation, Unofficials would almost certainly press for the payment arrangements under any agreement to be based on actuals and the Hong Kong Government could not resist this pressure.
10. The Governor 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
elsewhere at additional cost. He added that there was still
some ambiguity in the Hong Kong position, for example, the
choice of a frigate or 5 patrol craft. The Governor 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 11.30 am the following day.
4 November 1975
Sundara
(C T Sandars) PS/Minister of State
SEORET
/Distribution