ANNEX 1

"A SETTLEMENT BETWEEN £7.5m AND £8.5m"

A form which the option given at paragraph 5(b) of the paper might

take is as follows:

Over a period of 5 years the contribution by Hong Kong could be

£m

Total

Year

Capital Works

Maintenance and

Cash

Minor Works

contribution

1971-72

2.5

2.2

2.3

7.0

1972-73

2.5

2.2

2.8

7.5

1973-74

3.0

2.2

2.8

8.0

1974-75

3.5

2.2

2.8

8.5

1975-76

3.5

2.2

3.3

9.0

15.0

11.0

14.0

40.0

Average

3.0

2.2

2.8

8.0

Such a scheme would be subject to all the conditions at (b) to (e) of

Annex I except (c) which would be inapplicable.

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