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CONFIDENTIAL

CONFIDENIZAL UNTIL RELEASED

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The Agreement provides for the release for civil use, without compensation, of land and buildings no longer required by the British Services. In particular, the United Kingdom Government has undertaken to release land currently occupied by the Services at RAF Kai Tak and at Victoria Barracks. This land, which is owned by the Hong Kong Government, will be released during the financial years 1977/78 and 1978/79, subject to the necessary Service facilities being reprovided elsewhere by the Hong Kong Government.

This Agreement is in the interest of both Governments. For the United Kingdom it will provide a valuable contribution to the defence budget and for Hong Kong the assurance of a

continued British garrison.

CONFIDCONVENITAL

"CONFIDENTAL UNTIL RELEASED

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