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XCS(75)6
3
1976/77 1977/78 1978/79
2.
50%
62.5%
75%
and thereafter at 75% for as long as possible, the agreement to be at least for 7 years and preferably for 10;
(c) the offer at (b) was subject to a satisfactory time
schedule for the release of MOD land (with repro- visioning by the Hong Kong Government as appropriate) which would form an Annex to the agreement; and
(d) there were further points of detail to be pursued,
including a mechanism for reducing the cost to Hong Kong of any differential inflation.
Later the same day the proposals in paragraph 2(a) to (d) were discussed by the Governor with all Unofficial Members of both Councils. The latter approved the proposals subject to the addition of the following additional conditions:
(a) Vacant possession of Kai Tak should coincide with,
or be closely related to, the increase to 62.5%.
(b) Vacant possession of Victoria Barracks should
coincide with, or be closely related to, the increase to 75%; and
(c) a Joint Working Party should be established to
advise on the implementation of these arrangements, including the precise extent of the land to be released.
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Events since 1st November
4
Before his departure on 1st November, the Minister and the Governor signed a document entitled "Heads of Agreement" (Annex C), setting out the lines on which it was considered an agreement could be reached. The Minister indicated verbally that he had no authority to go beyond a 5 year term, but that he personally saw advantage in an agreement lasting at least 7 years and would recommend accordingly to his colleagues. He has also pointed out that the time available to meet the targets for the reprovisioning and vacation of Kai Tak and, especially of Victoria Barracks, is very short and that exceptional efforts would have to be done by both Governments to execute the pro- gramme within the proposed periods.
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