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MEMORANDUM OF UNDERSTANDING

Hong Kong Defence Contribution 1971-76

1.

This Memorandum of Understanding embodies arrangements

which have been agreed to by Her Majesty's Government and the

Hong Kong Government.

2.

During the five financial years beginning with 1971/72,

the Hong Kong Government will make a defence contribution at

the average rate of £8 million per annum. This contribution

will be made up as follows (figures in £ millions):-

Year

Cash Contribution

Capital Works

Maintenance and

Minor Works

Total

1971-72

2.4

2.9

2.2

7.5

1972-73

2.4

2.9

2.2

7.5

1973-74

2.4

3.4

2.2

8.0

1974-75

2.4

3.9

2.2

8.5

1975-76

2.4

3.9

2.2

8.5

Totals

12.0

17.0

11.0

40.0

3.

The following conditions are attached to the

contribution: -

(i) The contribution will be subject to review at any

time:

(a) if the costs of capital works at April 1971

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