GR 575
PRIORITY
CY/HER/CAT A
FM F.C.O. 061715Z
CONFIDENTIAL
CONFIDENTIAL...
RECEIVED IN REGISTRY NO. 50 -9 JUNI935
AKKIO!
TO PRIORITY HONG KONG TELNO. 454 OF 6 JUNE 1975.
FOLLOWING PERSONAL FOR GOVERNOR FROM O'KEEFFE.
REF.
าร
RES
REG
(172 176)
YOUR TELS NOS 544 AND 545 : DEFENCE COSTS AGREEMENT,
171
1. FOLLOWING IS THE DRAFT TEXT OF THE MEMORANDUM OF UNDERSTANDING AS AGREED AT OFFICIAL LEVEL BY THE APPROPRIATE DEPARTMENTS IN WHITEHALL, MINUS, OF COURSE, THE FIGURES OF RELATIVE CONTRIBUTIONS WHICH WILL NEED TO BE SETTLED BY SUBSEQUENT NEGOTIATIONS.
BEGINS:-
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 FINANCIAL YEARS BEGINNING 1976/77 THE HONG KONG
GOVERNMENT WILL MAKE A DEFENCE CONTRIBUTION IN HONG KONG DOLLARS
AS FOLLOWS:
(DETAILS OF THE AMOUNTS AND DURATION TO BE INSERTED)
3. THE AMOUNTS SHOWN ABOVE ARE AT A (SEPTEMBER 1974) PRICE LEVEL AND THEY WILL BE ADJUSTED ANNUALLY TO REFLECT CHANGES IN PRICE LEVELS RULING IN HONG KONG AND THE UNITED KINGDOM AS APPROPRIATE, SO THAT THE ACTUAL PAYMENT EACH YEAR WILL BE MADE AT PRICES
APPROXIMATING TO THE OUTTURN PRICES OF THAT YEAR. THE INDICES TO BE USED IN MAKING THIS ADJUSTMENT ARE SET OUT AT ANNEX AND THE
ADJUSTMENT WILL BE CALCULATED EACH YEAR ON THE BASIS OF THE
MOVEMENT IN THE RELEVANT INDICES FROM END-SEPTEMBER OF THE
PREVIOUS YEAR TO END-SEPTEMBER OF THE CURRENT YEAR. AT THE SAME TIME AS THIS ADJUSTMENT IS CALCULATED, A CALCULATION WILL BE MADE OF THE PROVISION TO BE INCLUDED IN THE ESTIMATES OF THE HONG KONG
GOVERNMENT FOR THE FORTHCOMING YEAR.
CONFIDENTIAL
14. THE