CONFIDENTIAL
5. All payments by the Hong Kong Government will be made in Hong
Kong dollars. Where these payments relate to a component of
cost expressed in sterling in Annex B, the conversion will be
made at the average rate of exchange for the quarter.
provisions for the calculation and payment of the Hong Kong
Government contribution will be set out in an agreed Statement
of Financial Procedures.
Detailed
6. The United Kingdom and Hong Kong Governments will from time
to time agree programmes for works services in respect of the
garrison comprising capital works and maintenance and minor works
(as defined in the Statement of Works Procedures provided for in
paragraph 9). The capital works programme
(a) will provide adequate facilities for the
garrison;
(b)
will facilitate the release of land surplus
to the requirements of the garrison; and
(c) may include purchases of buildings for the
garrison.
The Hong Kong Government will undertake and, in the first instance,
meet the expenditure under the programmes, which will be carried
out to normal United Kingdom standards and scales for Hong Kong.
Total expenditure under the programmes will not exceed HK8413M
adjusted in accordance with Annex B. The expenditure will be
spread as nearly as practicable to the annual average.
The Hong
Kong Government contribution will be 50% of the annual expenditure under the programmes from 1st April 1976 to 31st March 1977;
62.3% of such expenditure from 1st April 1977 to 31st March 1978;
and 75% of such expenditure thereafter; and the remaining amounts
of such expenditure will be set off against the quarterly payments
provided for in paragraph 4.
CONFIDENOTAT,
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