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8.
The Minister of State said that the propositions advanced
by the Governor involved understandable difficulties which might
prejudice the prospect of an agreement. He pointed out that the
Governor's initial statement at the meeting with the Executive
Council and Finance Committee had not specifically linked the further releasing of land to the higher contributions demanded.
been mentioned as an additional presentational point. He added that the Services had already vacated a considerable amount of land
recently and that further releases had already been agreed. He
regretted that the UK Government had been given no credit for
these releases.
It had
9.
The Minister said that he had referred the proposed
formula on HK's contributions to London but he feared that the
additional requirements now made would jeopardise an agreement.
He was also concerned that opinion might harden in London if he returned without an agreement and the present formula might be
eroded if negotations were prolonged.
10.
H.E. commented that he had not changed his position in
opting for the release of land to be linked to the higher contribu- tions now proposed. His opening statement had been solely concerned
with an equal sharing of costs. Since then the HK Government had
made a significant concession and wanted something in return.
11.
The Minister of State said that, if an agreement was to be reached, he felt confident that there would be no difficulty in the
UK meeting the timetable proposed for the releasing of service land. At Kai Tak it might be possible to release 17 acres as early as
1 April 1976, if this was considered helpful in presentatational terms.
At Victoria Barracks he was sceptical as to whether the HK
Government would be able to relocate the facilities within 1 1/2
years but he foresaw no impediment on the UK side.
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