ANNEX

CONFIDENTIAL

The following work is to be done before

an agreement is announced:

a)

b)

c)

d)

ie)

further examination of possible economies

in the support costs of the garrison;

further examination of the possibility

of limiting the cost of differential

inflation;

preparation of a schedule of land releases

:

(including Kai Tak and Victoria Barracks)

!:

to be attached to the Memorandum of

Understanding.

The related paragraph in

the Memorandum of Understanding should make

the point that, in the case of these two

areas only, reprovisioning will be paid

for separately by the Hong Kong Government;

completion of paras. 2 and. 5 and Annex A

of the Memorandum of Understanding;

t

preparation of a statement of working

principles for the works programme and

of a statement of financial procedures.

CONFIDENTIAL

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