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4.
While I would not rule out the idea
of extending the period of agreement, this
is not likely to find favour here unless
it offers some increase in the extra two
years when it could be expected that there
would be valid grounds for an increase on
the figure of £8.5 million. I can see no
hope of acceptance of a seven year agreement
at the level you suggest in your telegram
No. 266.
5.
It is true that the capital works
programme as it stands at present tails off
after 1974/75 but some £2.5 million will
remain to be spent in 1976/77 on married
quarters alone (paragraph 7 of my
telegram No. 43) quite apart from any other
capital projects the need for which may
become apparent by that time.
6. I am very sorry that I cannot go as
far as you may have hoped in supporting
the ideas outlined in your telegram No. 266.
I know that you have stressed throughout
that £8.5 million was the maximum you
might hope to negotiate locally. That
figure was however only accepted here as
the very minimum contribution to which HMG
could reasonably agree.
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