CONFIDENTIAL
5. THERE APPEARS TO BE SOME MISUNDERSTANDING OVER THE REVALUATION PROCEDURES WHICH WE HAVE IN MIND. IF THE CONTRIBUTION IS TO REPRESENT THE AGREED PROPORTION OF GARRISON COST, THEN EACH YEAR'S CONTRIBUTION MUST BE RELATED (APPROXIMATELY) TO THE OUT-TURN PRICES OF THAT YEAR AS REFLECTED IN THE MOVEMENT OF THE CHOSEN INDICES. THIS REQUIRES THAT EACH YEAR'S CONTRIBUTION 1S REVALUED DURING THE COURSE OF THE YEAR IN WHICH IT IS MADE. PARA 3 OF OUR
DRAFT MEMORANDUM OF UNDERSTANDING ALLOWS FOR THIS WHEREAS YOURS DOES
NOT.
J
CALLAGHAN
FILES
HKTO
COPIES
то
(4)
MR ABRA HAM,
DSG, MOD
DEFENCE D
SIR D. WATSON
MR WILFORD
MR MALE
MR THOMSON"
MR THORP FI (AIR). MOD
1
MR HANS FORD. HM TREASURY
2.
CONFIDENTIAL