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XCS(75)6
However it will be necessary for funds to cover the cost of reprovisioning to be found before any revenue from land disposal accrues to the Government. The estimate, contained in the report of the Planning and Finance Sub-Committee (at Annex C to Annex D) shows at appendix 7 the cost of reprovisioning and development at about $200 million in the next 31⁄2 years with an estimated gross return to the Govern- ment from these and other related sites of $1, 153 million (spread over a period of many years).
Other Developments
6
Since 1st November the following progress has been made with the items detailed in the Annex to Annex C. There have been further exchanges with MOD at the official level on:
(a) the cost of the garrison, and in particular, the
possibility of securing further economies as follows:
(i)
(ii)
At the start of the negotiations with Mr Rodgers, the cost of the garrison was put at $470 million HK dollars. When this figure had been adjusted to include the cost of 5 patrol craft rather than the frigate the cost was $464. As a result of these negotiations and exchanges the estimate of the cost at September 1975 prices has been reduced to $450 million.
Proposals have been made by the Hong Kong Government for a detailed examination of the cost of the garrison and its complement during 1977-78, with a view to achieving further economies, particularly in the UK element. This is being resisted by MOD who suggest it should be discussed between the Governor and Mr Rodgers.
(b) Arrangements to reduce the effect of differential infla-
tion. So far no agreement has been reached on this, but discussions are continuing and this is a matter which will have to be the subject of further argument in London.
(c) The preparation of a schedule of land releases. The areas of land have been defined and the release dates are being confirmed with HQBF.
(d) The changes in the Memorandum of Understanding to
reflect the decision (referred to in paragraph 2(c)) that
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