TNAG-0254-FCO40-290-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 61

SECRET

earlier this year. The annex to this letter shows

the reduced costing of the Garrison in 1971/72

and replaces the information that we gave you in

1969.

3. There are two points in relation to your

proposals on which we should be grateful for

clarification.

(a) Capital Works

You have suggested earmarking a maximum

of £2 million p.a. for non-recurrent

capital works which would remain the

property of the Hong Kong Government

and would be selected from works which

are agreed by them to be of potential

value to Hong Kong if no longer needed

for use by the Services.

Our under-

standing of this is that within an

annual contribution of £8 million there

would be a varying amount of up to

£2 million annually for capital works

of that description. Depending on what

is regarded as of potential value to

the Colony it would seem that the amount

could be appreciably short of £2 million

in some years but we assume that this

would not affect the overall amount of

the contribution and that, as in the

case of the existing agreement, there

could by mutual consent, be virement

between the capital and recurrent elements

of the contribution.

Perhaps you would

confirm that this is your intention.

(b) Minor Works and Maintenance

The existing arrangement whereby

Are

/the....

NOTHING TO BE WRITTEN IN THIS MARGIN