CONFIDENTIAL

/A detailed breakdown of individual items of expenditure is attached.

4.

Work on some of these projects has already begun, drawing on funds set aside for stages 3 and 4 of the Whitehead project. The

Hong Kong Government have told us that they will soon run into

difficulties in keeping the Whitehead and High Island projects on

schedule, which could mean a delay in moving people from the

ferries.

CONFIDENTIAL

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