TNAG-0541-FCO40-636-Strength-of-garrison-in-Hong-Kong-1975 — Page 141

CONFIDENTIAL

PARA 4

(B) WE SUGGEST DELETE LAST SENTENCE AND SUBSTITUTE:

)'WE

''THE FIGURE SO ADJUSTED WILL BE THE HONG KONG

COVERNMENT'S ESTIMATED CONTRIBUTION FOR THE FOLLOWING

FINANCIAL YEAR,''

IT IS DIFFICULT TO COMMENT ON THIS UNTIL WE HAVE THE

DETAILS TO BE INCLUDED 111 PARA 2. OUR INITIAL COMMENTS

ARE AS FOLLOWS:

(A) THE EXISTING STATEMENT OF WORKING PRINCIPLES'' AGREED

FOR THE CURRENT AGREEMENT HAS WORKED WELL IN PRACTICE AND SHOULD BE RETAINED SUBJECT TO MODIFICATIONS TO DETAIL TO BRING IT UP TO DATE.

(B) WOULD IT NOT BE CLEARER TO INCLUDE PROVISION FOR MINOR

WORKS AND MAINTENANCE IN A SEPARATE PARAGRAPH IN THE AGREEMENT AS WAS DONE IN PARA 3(11) OF THE CURRENT AGREEMENT?

(C) THE PROVISION FOR MAINTENANCE AND MINOR WORKS INCLUDED

IN THE HONG KONG GOVERNMENT ESTIMATES WOULD BE BASED ON

CURRENT COSTS AND THE WORK WOULD BE UNDERTAKEN TO NORMAL

U.K. STANDARDS AND SCALES.

.(D) SO FAR AS CAPITAL WORKS ARE CONCERNED, WE UNDERSTAND

YOUR WISH TO COVER YOURSELVES AGAINST ANY UNDER-SPENDING:

FOR OUR PART WE ARE CONCERNED TO PROVIDE AGAINST UNDER-

AUTHORISATION. WE WISH TO ENSURE THAT ADEQUATE FUNDS TO

FINANCE THE CAPITAL WORKS PROGRAMME REQUIRED BY THE

GARRISON ARE AGREED AND REGULARLY SPENT. SEPARATE

PROVISION FOR CAPITAL WORKS ALONG THE LINES OF THE

CURRENT AGREEMENT SHOULD RESOLVE THESE NOT NECESSARILY.

CONFLICTING REQUIREMENTS.

PARA 5 (A) WE COULD NOT ACCEPT WITHOUT QUALIFICATION THAT THE LESS

THAT IS SPENT ON CAPITAL WORKS THE HIGHER THE PROPORTION

OF RECURRENT EXPENDITURE HONG KONG WOULD BEAR. WE WISH

WORKS TO BE MAINTAINED AT, OR ABOVE, A SPECIFIED MINIMUM LEVEL (SEE ALSO COMMENTS ON PARA 4(D) AND ON PARA 6). (B) THE QUESTION OF CURRENCY WILL BE THE SUBJECT OF A

SEPARATE REPLY.

PARA 6

WE ARE NOT SURE THAT WE UNDERSTAND THIS PROVISION. THE EXISTING ARRANGEMENTS IN PARAS 3(111) AND 3(VI) IN THE

CURRENT AGREEMENT HAVE WORKED WELL AND WE WOULD PREFER

TO RETAIN SOMETHING ON THESE LINES, IT WOULD, WE THINK, BE NECESSARY TO AGREE A PROGRAMME OF CAPITAL WORKS AND

AS STATED ABOVE ENSURE THAT THE FUNDS PROVIDED FOR THIS

/ ARE

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CONFIDENTIAL