CONFIDENTIAL

(iii)

(iv)

(v)

(vi)

There may be virement in capital works expenditure as between one year and another.

All capital works paid for by Hong Kong will revert to the Hong Kong Government if no longer required by Her Majesty's Government.

In the authorisation of capital works, minor works and maintenance scales the same criteria and controls will be exercised as if Her Majesty's Government were paying.

To the extent that Her Majesty's Government is responsible for less than 17 million being spent on capital works or on the purchase of buildings in Hong Kong over the five year period of the agreement, there will be no corresponding increase in the cash element of Hong Kong's contribution. To the extent that any such shortfall is the responsibility of the Hong Kong Government that Government will make up the shortfall by a corresponding increase in its cash contribution.

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CONFIDENTIAL

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