(134392) Dd. 737115 750% 4/70 Hw.

NOTHING TO BE WRITTEN IN THIS MARGIN

SECRET

APPENDIX A

Type 1 +

Registry, No.

HKK 10/9

DRAFT

UNDERSTANDING

S'

To:-

JRITY CLASSIFICATION

Top Secret.

Secret.

Confidential.

Restricted. Unclassified.

From

Telephone No. & Ext.

Department

HONG KONG DEFENCE CONTRIBUTION 1971-76

1. This Memorandum of Understanding embodies

arrangements which have been agreed to by Her

Majesty's Government and the Hong Kong Government.

During the five financial years beginning with

1971/72, the Hong Kong Government will make a

defence contribution at the average rate of

2.

£8 million per annum. This contribution will be

made up as follows (figures in £millions):

Year

Cash Contribution

Capital

Works Minor Works

Maintenance and

Total

1971-72

2.4

2.9

2.2.

7.5

1972-73

2.4

2.9

2.2

7.5

1973-74

2.4

3.4

2.2

8.0

1974-75

2.4

3.9

2.2

8.5

1975-1976

2.4

3.9

2.2

8.5

Totals

12.0

17.0

11.0

40.0

3. The following conditions are attached to the

contribution:-

the contribution will be subject to

review at any time:

(a) if the costs of capital works at

April 1971 prices increase or

decrease by 50 per cent or more, or

SEOR

/(b)

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