CONFICONFIDENTIAL
Head F1(A)/4395
CONFIDENTIAL
DRAFT
MEMORANDUM OF UNDERSTANDING HONG KONG DEFENCE CONTRIBUTION FROM 1st APRIL 1976
An Agreement between Her Majesty's Government in the
United Kingdom and the Hong Kong Government:
1. The size, composition and cost of the garrison for which
this Agreement provides are set out in Annex A.
2. The Hong Kong Government will contribute to the cost of
the garrison in the following manner:
3.
Details of the make-up and duration to be inserted.
The cost of the garrison is at a September 1974 price
level. The figures for the various components of cost set
out in Annexes A and B will be updated to September 1975 price
levels before the 1st April 1976. The Hong Kong Government
contribution as provided for in paragraph 2, will, after setting
off the UK Government's share of expenditure on capital works,
maintenance and minor works in the manner described in paragraphs 5
and 8, be paid by quarterly instalments on the last day of each
quarter of the financial year, with adjustments for changes in
the price levels ruling in Hong Kong and the United Kingdom
being made as follows. Before each quarterly payment becomes
due, a calculation will be agreed between the Hong Kong and
UK Governments of the changes necessary to adjust each of
the separate components of the garrison cost (other than capital
works, maintenance and minor works) listed in Annex B to the
levels ruling at the beginning of that quarter. The indices
or other measures to be used in calculating these adjustments
are set out in Annex B, and the adjustments will be calculated by references to the month NFIDENTIAL
movements in the indices CONFIDENTIAL