TNAG-0310-FCO40-346-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 208

126)

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DEPARTMENT OF THE

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ENVIRONMENT

BBXXXXXXXXXXXXXDWORKS

LAMBETH BRIDGE HOUSE, LONDON S.E.I

Telephone: 01-735 7611 EXT 2188

Our Ref: DSO 1112/30

A W Gamminara Esq

Foreign and Commonwealth Office Downing Street

SW1

Dear Gaminara

HONG KONG DEFENCE AGREEMENT

LAST

REF

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9 August 1971

Ref.

Thank you for your letter HKK 10/9 of 4 August forwarding a first draft of a reply to Hong Kong telegram No 528.

Presentationally it obviously would not be easy for the Governor to go back on the £17 million for the capital works programme. For our part it is a question offsetting two imponderables viz price rises against slippage in getting the work done. As regards the latter, although we have no reason to doubt the good intentions of the Hong Kong Finance Department and the PWD, we shall be very largely in their hands.

On balance we have come to the conclusion that the £17 millions is safe provided that a qualification is built into the Governor's condition 3 (5).

I enclose suggested paragraphs to replace paragraph 3 of your draft reply, your paras 4 and 5 to be renumbered 6 and 7. The new para 3 deals with the main point. The reasons for the new paras 4 and 5 are, I think, self evident.

I am sending copies to Brack and Thorp and also to Lockwood DDQ (A)

Yours sincerely

KD IN REGISTRY No.51 16 M001771

1141CK 10/9

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