3.
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collectiody now
Ministers require a report on the outcome
of your attempts to secure the support of
for
Executive Councile their proposals. It is
not clear from your telegrams what exactly you
have so far\said to the unofficial members about
those proposals.
In your further discussions
with them you may explain that the figures in
553
paragraph 2 of FCO telegram No 20 were
provided
Hed) to
ed) to illustrate the kind of arrangement
that HMG would be prepared to accept and that in
the example given the balance of capital works
programme above £15 million would be paid for by
HMG.
If it would help you in presenting the
terms to your Executive Council there would be no
objection (subject to paragraph 4 below) to
increasing the capital element to £17 million
and reducing the recurrent cash element of the
contribution as indicated in paragraph 2 of your
telegram No 528 provided that the total annual
contribution remained at £8 million over the five
year period.
4. However, in accepting this HMG would need
some modification of the condition suggested in
paragraph 3 (B) of your telegram No 528. It is
accepted that if HMG is in any way responsible
for any shortfall in the capital expenditure of
£17 million over the five year period there shoula
be no increase in the cash contribution.
If on
the other hand responsibility for any shortfall
could be placed at Hong Kong's door (eg, see
paragraph 2 (B) of your telegram No. 266) then
(8430) Dd,033246 600m 9/66 G.W.B.Ltd. Gp.963
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