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XCSI(75)2
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instance, this being set against the cash payments due. Even though, technically, Hong Kong will not in this way be meeting the full cost of the programme, all capital works will revert to Hong Kong when no longer required.
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The review clauses in paragraph 9 of the draft MOU in- clude similar provisions to the current Agreement concerning changes in the size or composition - of the agreed garrison and serious adverse change in Hong Kong's economic circumstances, with the addition of one clause related to the new inflator arrangements. Paragraph 10 is a new blanket review clause. UK officials under- stand Hong Kong's wish to include such a review clause but have indicated that it could cause difficulties for HMG,
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The draft Memorandum of Understanding is submitted for Honourable Members' information to provide a framework within which details of garrison size, cost and cost-sharing can be con❤ sidered once these are known.
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Under 'Any other business' on 12th August 1975, Honourable Members will be asked whether the draft should be circulated to UMELCO at this stage.
8th August 1975
(SCR 5/62 VI)
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