CONFIDENTIAL CONFIDENTIAL
ANNEX D TO HK 10039/1 G SD DATED
INFLATION ELEMENT FOR HONG KONG DEFENCE CONTRIBUTION
JANUARY 1975
1. The amount of the contribution to be paid annually will be adjusted to allow for changes in costs from the base date according to the following formula.
2.
The cost of the garrison, will be split into the following components:
Pay and allowances (excluding LOA) of UK-based service and
civilian personnel.
b.
0.
Pay and allowances (other than LOA) of Gurkha personnel.
Pay of locally engaged personnel and civilians.
d.
e.
f.
Local overseas and foreign service allowances (LOA and FSA) for a: above.
Local overseas and foreign service allowances for b. above.
Equipment, stores, supplies, etc bought from UK.
Equipment, stores, supplies, etc bought elsewhere.
h.
Capital works and maintenance.
i.
Hirings.
3.
The changes in costs of the above components will be measured in the following ways:
Movements in the basic rates promulgated for 2.a. wherever they may be
serving.
b.
Movements in the basic rates of 2.b.
For 2.c., movements in the six-monthly wage rates index in Hong Kong.
d. For 2.d., changes in promulgated rates assessed in accordance with the service-wide practice for LOA and with the Civil Service practice for FSA.
e. For 2.e., changes in rates as promulgated.
f.
For 2.f., movements in the monthly index of wholesale output prices of manufactured goods in the UK.
G. For 2.g., movements in the monthly consumer price index (B) in Horig Kong.
h. For 2.h., movements in the monthly building cost index compiled by FWD, Hong Kong.
i.
ነ ;
For 2.1., movements in the annual index of rents of medium and large flats in Hong Kong.
4. The changes will be assessed and the appropriate adjustments to the contribution made at annual intervals as soon as possible after the end of each financial year.
D-1
COMPA
CONFIDENTIAL