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Colonial Government to complete the anti-malarial
works, if they should cost more than $975,000, but
to fix a top limit to the amount of Military
expenditure necessary to qualify for our waiver of
rent on the Sham Shui Po, site. Any additional
expenditure would be outside the four corners of the present agreement and, if the Colonial Government
were asked to contribute towards any excess, the
terms and conditions of such contribution would need
to be separately agreed. The present Agreement only goes so far as to provide that if the Military shall have spent $975,000 on the capital cost of anti-malarial
works the Colonial Government will not be in a position
to withdraw its waiver of rent on the ground that the
works are incomplete. I do not myself anticipate
that the estimate of $975,000 will be exceeded nor,
in view of the fact that under the agreement their
future maintenance will be a Military liability,
should I regard the agreement as unduly favourable
to the Military if in the event the anti-malarial works should be found to cost less than $975,000.
4.
In the light of the preceding paragraph
the stipulation suggested in your fifth paragraph (that the Colonial Government will not be liable for any cash outlay on the completion of the anti-malarial works until the completion of the transfer to them of the Sham Shui Po site) will be seen to be unnecessary.
No such liability indeed arises under the present
provisional agreement.
5.
I have inferred from the phrase "the road
system on the Kau Lung Tsai area", occurring in the last sentence of your despatch, that the map which I