CONFIDENTIAL
ANNEX B
The Hong Kong contribution to be paid in accordance with paragraph 3 of the Agreement will be adjusted to allow for changes from September 1975 price levels in the following manner.
2. The cost of the garrison described in Annex A has been divided into the components listed below in the first column and the respective amounts of cost set out in sterling and Hong Kong dollars are shown in the second and third columns.
£ Sterling
Components
millions)
HK % (millions)
(1)
Pay and allowances (excluding LOA and FSA) of UK-based service and civilian personnel
3.6
56
(ii)
Pay and allowances (other than LOA) of Gurkha personnel
10
(iii) Pay of locally engaged personnel
and civilians
(iv) Local overseas and foreign service
allowances (LOA and FSA) for (1)
64
52
(v)
Local overseas allowance for (ii)
21
(vi)
Equipment, stores, supplies etc
119
(vii) Works services
59
(viii) Hirings
7
(ix) Air Trooping
24
412
3.6
38
Total
450
3.
The changes in costs of the above components will be assessed by applying the following measures:
(a) for (i), movements in basic rates wherever
the personnel are serving.
(b) for (ii), movements in basic rates;
(c) for (iii), movements in actual wage rates;
(d) for (iv), changes in promulgated rates assessed in accordance with the Service-wide practice for LOA and with the Civil Service practice for FSA;
(e) for (v), changes in rates as promulgated;
(f) for (vi), movements in the monthly consumer price index (B) in Hong Kong;
Bl