TNAG-0310-FCO40-346-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 85

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Reference.

Pif on Defen Бром NA Combit. file

11. 10.),

Mr Gaminara (or)

qeminara

HONG KONG DEFENCE CONTRIBUTION

167

1. I took Mr Haddon-Cave along to the Department of the Environment on 29 September.

2.

Mr M Wright came with us (as a former Director of Public Works he was able to intervene in the discussion in a most useful fashion from time to time). We saw Mr Stretton who had Mr Smith with

him.

3. There was some talk about the purchase of buildings (married quarters in particular) in place of new construction. The figures the DOE had in mind were of the order of 250 married quarters out of a total of some 850. Many of these quarters were already occupied by service people and in these circumstances Mr Haddon-Cave readily agreed that there would be no difficulty in this respect. He had earlier made the point that the Hong Kong Government had to be careful not to upset the property market by any large scale intervention.

4. Most of the time was spent on the question of the ability of the Public Works Department to carry out a programme of this magnitude in the 41⁄2 years now remaining of the term of the new agreement. Mr Haddon-Cave said that there was bound to be slippage: there always was in programmes of this nature. He was however reluctant to give the DOE any kind of undertaking that there would be a cash payment in lieu of any works not carried out unless there had been some sort of major default on the part of the Hong Kong Government. He argued that if there was slippage in year 1 it would be picked up in year 2 although there would then be slippage from year 2 to year 3. At the end of the 5 years there would

the sensible probably be certain works half completed; thing to do would be for the Hong Kong Government to pay for the completion of such buildings after the end of the 5 years. I do not think we need worry about this and I hope the DOE will not pursue it. Mr Stretton will be going to Hong Kong fairly soon and will be discussing details of the arrangements on the spot.

5. Incidentally it came out during the discussion that the services programme of £17 million over the 5 years will take up about 20 per cent of the PWD capacity as a whole and probably something nearer 30/35 per cent of the capacity of the architects branch of the department.

En

E O Laird

30 September 1971

DD 737719 557664 500M 2/71 GM 3643/2

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