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MDHIAN 7044
5. ITEM D-TAI A CHAU IMPROVEMENTS. WE HAVE HAD TO REVISE THESE COSTS AGAIN TO TAKE ACCOUNT OF IMPROVEMENTS TO THE WATER SUPPLY SYSTEM. WE HAVE ALSO DECIDED, FOLLOWING THE DISTURBANCE, THAT WE SHALL NEED TO FENCE IN THE ACCOMMODATION
AREA.
6.
THE TOTAL ADDITIONAL COST OF THE PROJECTS AT HIGH ISLAND, SEK KONG AND THE IMPROVEMENT WORKS AT TAI A CHAU IS NOW
ESTIMATED AT STERLING 4.948 MILLION. OUR ESTIMATE FOR THE COST
OF HIRING THE FERRIES REMAINS STERLING 0.6 MILLION.
7. WE ARE NOT YET IN A POSITION TO PROVIDE YOU WITH
DETAILED COST ESTIMATES FOR THE FULL DEVELOPMENT OF TAI A CHAU (I.E. PROJECT E IN PARA 5 OF SECOND TUR). THE FEASIBILITY
STUDY WILL BE COMPLETED IN EARLY OCTOBER AND WE ARE AIMING TO
LET YOU HAVE A SCHEDULE OF COSTS BY 6 OCTOBER. NOR ARE WE YET
IN A POSITION TO PROVIDE AN ASSESSMENT OF THE POTENTIAL FOR
CONSTRUCTING FURTHER PERMANENT ACCOMMODATION AT SEK KONG.
THIS SHOULD ALSO BE READY BY EARLY OCTOBER.
8. ON RECURRENT EXPENDITURE (PARA 3 OF YOUR TELNO 1874)
THE POSITION IS THAT WE ARE IN FACT ALREADY OPERATING A
SUSPENSE ACCOUNT. WE SHARE UKMIS GENEVA'S CAUTION (UKMIS GENEVA
TELNO 579) OVER THIS ARRANGEMENT. WE ESTIMATE THAT THE
TOTAL VALUE OF THE UNHCR REIMBURSEMENT FOR 1989 SHOULD BE
ABOUT HKD165 MILLION. HOWEVER UNHCR HAVE NOW MADE IT CLEAR
THAT THEY ARE NOT/NOT IN A POSITION TO COMMIT THEMSELVES
TO PAYING ANY MORE THAN HKD 90 MILLION AT THIS STAGE. THIS WILL FALL FAR SHORT OF COMMITMENTS ALREADY INCURRED, LET ALONE OUR REQUIREMENTS UP TO THE END OF THE FINANCIAL
YEAR.
9. I RAISED THIS WITH VIEIRA DE MELLO ON 25 SEPTEMBER. IT
APPEARS THAT UNHCR WILL SOON BE ABLE TO OFFER US A SUM THAT IS LESS THAN THE DOLLARS 165 MILLION, BUT THE EXACT AMOUNT REMAINS UNCLEAR. ONCE WE KNOW HOW MUCH WE SHALL RECEIVE, WE SHALL BE IN A POSITION TO ASK YOU TO PUT TO HOCKE A FORMAL REQUEST FOR
THE PAYMENT OF THE REMAINDER.
WILSON
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