CONFIDENTICONFIDENTIAL
CONFIDENTIAL
a.... other measures, assuming that one twelfth of the annual
cost of the garrison falls in each month of the year. The
instalment to be paid at the end of June 1976 will include the adjustments so calculated up to 1st April 1976. Subsequent instalments will include the adjustments in relation to both
the quarter of payment and the immediately preceding quarter.
After the end of the period of the Agreement a calculation
will be made of any further adjustments needed and a final
settlement will take place.
4.
All payments by the Hong Kong Government will be made
in Hong Kong dollars. Where these payments relate to
components of cost expressed in sterling in Annex B, the
conversion will be made at the average rate of exchange
for the quarter.
5. The United Kingdom and Hong Kong Governments will from
time to time agree and the Hong Kong Government will undertake
and, in the first instance, meet the expenditure on a programme
of capital works, to provide adequate facilities for the
garrison and to facilitate the release of land surplus to the
requirements of the garrison. The programme, which may include
purchases of buildings for the garrison, will be carried out to
normal United Kingdom standards and scales in Hong Kong. Expendi-
ture will be spread as evenly as practicable over the period of
the Agreement.
Estimated expenditure under the programme will
be not less than $
accordance with Annex P.
*
adjusted in
nor more than g
The Hong Kong Government contribution
% of the actual expenditure under the programme
and the remaining
will be
will be set off against the quarterly
payments provided for in paragraph 3.
CONRADENTIAL