CONFIDENTIAL
CYPHER CAT A
IMMEDIATE/IMMEDIATE 231750Z DEC
MODUK ARMY
FROM
TO
DOE HONG KONG
51
INFO TPS HONG KONG
4 DEC 1975
(22)
FCO LONDON
C-ONFIDENTIAL
DIG MMK (CORRECTED VERSION)
ников
FOR RUSSELL CROUCHER FROM AGGLETON INFO AQMG (QTR) HQLF AND FCO TO RELAY TO WHIGGAM FINANCIAL SECRETARIAT HKG. SUBJECT. RENEGOTIATION OF HONG KONG DEFENCE AGREEMENT. ONE. CONSEQUENT ON INITIAL DISCUSSIONS WITH DAVIES AND THORNTON GREAT IMPORTANCE BEING ATTACHED HERE TO THE COMPLETION OF AGREED WORKS PROCEDURES BEFORE GOVERNOR AND MINISTER MEET ON FRIDAY. IMPERATIVE WE RECEIVE BY SIGNAL BY 1002 HRS GNT 5 DEC DRAFT PROPOSALS AGREED JOINTLY BY HONG KONG GOVERNMENT CBF AND YOURSELF. TWO. PROCED- URES MUST REFLECT MOU FOR WHICH RELEVANT PARA NOW READS AS FOLLOWS QUOTE THE UNITED KINGDOM AND HONG KONG GOVERNMENTS WILL FROM TIME TO TIME AGREE PROGRAMMES FOR WORKS SERVICES IN RESPECT OF THE GARRISON INCLUDING CAPITAL WORKS, MAINTENANCE AND MINOR WORKS (AS DEFINED IN THE STATEMENT OF WORKS PROCEDURES PROVIDED FOR IN PARAGRAPH 8). IN RELATION TO THE CAPITAL WORKS THE PROGRAMME (ALFA) SHALL PROVIDE ADEQUATE FACILITIES FOR THE GARRISON. (BRAVO) SHALL FACILITATE THE RELEASE OF LAND SURPLUS TO THE REQUIREMENTS OF THE GARRISON. (CHARLIE) MAY INCLUDE FURCHASES OF BUILDINGS FOR THE GARRISON. THE HONG KONG GOVERN- MENT WILL UNDERTAKE AND, IN THE FIRST INSTANCE, MEET THE EXPEND- ITURE UNDER THE PROGRAMMES WHICH WILL BE CARRIED OUT TO NORMAL UNITED KINGDOM STANDARDS AND SCALES FOR HONG KONG. TOTAL EXPENDITURE UNDER THE PROGRAMMES DURING THE PERIOD OF AGREEMENT SHALL NOT EXCEED (DOLLARS X) (IE DOLLARS 59M MULTIPLIED NUMBER OF YEARS) ADJUSTED IN ACCORDANCE WITH ANNEX B, THE EXPENDITURE WILL BE SPREAD AS NEARLY AS POSSIBLE TO THE ANNUAL AVERAGE OF DOLLARS 59M. THE HONG KONG GOVERNMENT CONTRIBUTION WILL BE 50 PERCENT OF THE ACTUAL EXPENDITURE UNDER THE PROGRAMMES FROM APRIL 1976 TO 31 MARCH 1977. 62.5 PERCENT OF SUCH EXPENDITURE FROM 1 APRIL 1977 TO 31 MARCH 1978, AND 75 PERCENT OF SUCH EXXPENDITURE THEREAFTER AND THE REMAINING AMOUNTS OF SUCH
CONFIDENTIAL
/EXPENDITURE