TNAG-0545-FCO40-640-Strength-of-garrison-in-Hong-Kong-1975 — Page 98

CONFIDENTIAL

CAPITAL WORKS AND MAINTENANCE AND MINOR WORKS CAN BE MET PROVIDED

THE AGREEMENT IS FOR AT LEAST SEVEN YEARS BECAUSE THIS WILL ENABLE

EXPENDITURE ON WORKS SERVICES TO AVERAGE OUT AT DOLLARS 59 M. A YEAR). IF THE AGREEMENT PERIOD IS FOR 10 YEARS, WHICH IS STILL A NEGOTIATIVE POINT, THE PROBLEM OF FITTING IN EXPENDITURE ON WORKS

SERVICES WILL BE SIMPLIFIED. WE HAD ORIGINALLY HOPED THAT EXPENDITURE

COULD BE ''SPREAD AS EVENLY AS PRACTICABLE'' (PARA 5 OF THE DRAFT MOU) BUT NOW ACCEPT THAT, FOR THE REASONS REFERRED TO ABOVE, THIS MUST BE MODIFIED TO AN ANNUAL AVERAGE EXPENDITURE'?

! APPROACH.

#

5. TO ALLOW PSA, HQBF AND PWD FLEXIBILITY OF EXPENDITURE BETWEEN YEARS, WITHIN AN OVERALL TOTAL OVER THE PERIOD (IN EFFECT 7 TIMES DOLLARS 59 M.) AND TO ALLOW ALSO FLEXIBILITY BETWEEN THE CAPITAL WORKS ELEMENT AND THE MAINTENANCE AND MINOR WORKS ELEMENT (ON WHICH ELEMENT PSA REPRESENTATIVES HOLD STRONG VIEWS), WE HAVE CONCLUDED THAT, FOR THE PURPOSES OF THE MOU, PARAGRAPHS 5 AND 8 OF THE DRAFT SHOULD BE COMBINED INTO ONE PARAGRAPH TO COVER BOTH THE PROGRAMME OF CAPITAL WORKS OVER THE PERIOD OF THE AGREEMENT AND THE ANNUAL PROGRAMME OF MAINTENENACE AND MINOR WORKS. A FIRST DRAFT OF THE STATEMENT OF WORKS PROCEDURES IS BEING PREPARED. IT WILL SPELL OUT THE DETAILS OF ALLOCATION AND EXPENDITURE PATTERNS, AS WELL AS PROCEDURES.

6. ON THE ASSUMPTION THAT YOU AGREE WITH THIS APPROACH, WE

SUGGEST THE FOLLOWING PARAGRAPH TO REPLACE PARAGRAPHS 5 AND 8

IN THE DRAFT MOU :

"' THE UNITED KINGDOM AND HONG KONG GOVERNMENTS WILL

FROM TIME TO TIME AGREE PROGRAMMES FOR WORKS SERVICES IN RESPECT

OF THE GARRISON INCLUDING CAPITAL WORKS, MAINTENANCE AND MINOR WORKS (AS DEFINED IN THE STATEMENT OF WORKS PROCEDURES PROVIDED FOR IN PARAGRAPH 8). IN RELATION TO THE CAPITAL WORKS THE PROGRAMME

SHALL PROVIDE ADEQUATE FACILITIES FOR THE GARRISON :

(1)

(2)

SHALL FACILITATE THE RELEASE OF LAND SURPLUS TO THE

REQUIREMENTS OF THE GARRISON:

(3)

MAY INCLUDE PURCHASES OF BUILDINGS FOR THE GARRISON.

THE HONG KONG GOVERNMENT WILL UNDERTAKE AND, IN THE FIRST INSTANCE, MEET THE EXPENDITURE UNDER THE PROGRAMMES WHICH WILL BE CARRIED

OUT TO NORMAL UNITED KINGDOM STANDARDS AND SCALES FOR HONG KONG.

2

CONFIDENTIAL

/ EXPENDITURE