TNAG-1642-FCO40-2289-Public-finance-in-Hong-Kong-Supplementary-Appropriation-(198-1987 — Page 112

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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25.11.86

Date:

2.15 to 5.00

Time:

Reporter:

JPM

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DTEIT:

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That is true, Sir. As 130 says, it doesn't

say it directed them to do so; the Director of Audit uses the word

'allowed'.

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MR CHEONG:

Well, that means contracturally, we have

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no obligation to pay that $8.6 million?

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DTEIT:

I think that would be the case Sir, but

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I am also and I think everyone else involved in this unfortunate

case is concerned is that we if we refused it, would be liable I think

and any court would uphold this. I have always taken that view and

12 the Council has, and so has Government and the Finance Committee have

in fact already approved some funds for this.

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MR CHEONG:

Has legal advice been taken on this

particular issue, or was it simply the Council or your own estimation

that you would be taken to court and that you would have to pay that $8.6 million?

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DTEIT:

I am not sure Sir, whether Finance Branch in

Central Government did this, I cannot answer that. I do know that the

Council itself has not taken legal advice on this particular issue as

far as I am aware, although if I am wrong I will inform you immediately in writing.

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MR CHUNG:

I don't know whether the Director agrees

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that there is a lesson to be learned for the future and if so, how

the Director will ensure that the design and the financial consider-

ations are closely related with the planning oh I am sorry, I had better repeat. I don't know whether the Director will agree that

there is a lesson to be learned for the future arising from these two projects and if so, how the Director will ensure that the design and financial considerations are closely related in planning the future Council's building projects.

DTEIT:

Yes Sir, there is certainly a lesson to

!

IT

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