NOTHING TO BE WRITTEN IN THIS MARGIN

W(B)L 51-7406

SECRET

(ii) if there were an increase or

decrease in the size of the

garrison by more than one

major army unit or the

equivalent, or,

(iii) if the economy of Hong Kong

were to suffer such a serious

adverse change that the

continued payment of a

contribution at this level

could be shown to be an

unreasonable burden on the

Colony's finances.

(c) The agreement would also be subject

to review after 5 years if the

recurrent costs of the garrison

had by then increased by more

than 33 per cent over April

1971 costs.

(a)

The £2.2 million per annum for

maintenance and minor works would

be a notional figure only; the

Hong Kong Government would in

fact be completely responsible

for all maintenance and minor

works over the period of the

agreement, no matter what the

cost.

(e) There would be virement in

capital expenditure as between

one year and another.

2.

SECRET

(145181) Dd. 737490 750M 1/71 Hw.

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