TNAG-0310-FCO40-346-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 84

CONFIDENTIAL

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(c)

(a)

(e)

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the $2.2 million a year for maintenance and minor works will be a notional figure only. The Hong Kong Government will be responsible for all maintenance and minor works over the period of the agreement, no matter whether the cost is greater or less than this amount;

there can be virement in capital works expenditure ea between one year and another;

all capital works paid for by Hong Kong will revert to Hong Kong if no longer required by HM Government;

in authorising capital works, maintenance scales and minor works the same criteria will be exercised as if IN Government were paying;

to the extent that HM Government is in any way responsible for any short-fall in the capital expenditure of £17 million over the five year period there will be no increase in the "cash contribution".

The arrangements agreed upon in 1966 for the 4 years 1967/71 gerc embodied in a Memorandum of Understanding and although we have not as yet given any thought to the form in which the arrangements for the next 5 years will be placed on record I have no doubt that we shall have to agres with Hong Kong the Lerns of a new document siziler to the 1966 Memorandum of Understanding.

The terms which I have sumsrined above come From a large number of telegrams which we have exchanged with Hong Kong over the last 6 months. I have made a note that when a new agreement is dramı up you would like to have a CODY.

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CONFIDENTIAL

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