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as we can reasonably expect to go. We consider you already have adequate ammunition at your disposal to be able to make these points forcibly. But if it helps you can add that we now know that excluding all works costs the Garrison is going to cost us at least £24M in 1972/73 of which £142M is estimated to be local costs. The main reason for the increase over 1971/72 is that Army numbers have increased although the number of units is the same."
I would suggest a revision to the second and third sentences of existing paragraph 4 to cater for the possibility that an under-spending on capital works could result from both changes in programme and slippage on the part of PWD. The two sentences would therefore read:·
"It is accepted that to the extent that HMG was responsible for any short-fall in the capital expenditure of £17M over the five year period there should be no increase in the cash contribution. On the other hand to the extent that responsibility for any short-fall could be placed at Hong Kong's door
made up in cash.
d) Reference to paragraph 4 in existing paragraph 5 will now
become paragraph 5.
e)
In paragraph 7 we refer to the specific terms in telegram 553 whereas we are giving the Governor the discretion to alter these in the way he has suggested in his telegram 528. We ought perhaps therefore to say "a scheme as set out" instead of "specific terms"
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