TNAG-0370-FCO40-416-Visit-of-Edward-Heath--UK-Prime-Minister--to-Hong-Kong--12-1-1973 — Page 46

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The figure of £11 million is a nominal one, the Hong Kong

Government doing all minor works and maintenance regardless of the

actual cost. Any underspending by the Hong Kong Government on

the capital works figure will be made good in cash if the

Hong Kong Government is responsible for the shortfall.

8. Since the present Agreement was drawn up, the estimated cost

of the capital works programme has risen and the forward commitment

beyond 1 April 1976 has grown. We are therefore considering

whether to seek negotiations with the Hong Kong Government fairly

soon about the financing of the works programme beyond 1976.

Line to Take

9. This is a delicate subject. Members of Executive Council and

Legislative Council in particular may assert that they have to

pay too much. The Prime Minister could say that, whilst we

appreciate Hong Kong's contribution, ours is much greater.

After all, the garrison is there for Hong Kong's benefit.

Foreign and Commonwealth Office

14 December 1973

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