CONFIDENTIAL UNTIL ISSUED

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than in the United Kingdom. The Agreement makes provision

for reviews of any aspect of the costs or composition of the

garrison, including the cost of the support elements, with

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any savings being shared in the same proportion as the

contributions.

4.

HMG has undertaken to release land currently occupied by

the Services at Kai Tak (about 120 acres) and at Victoria

Barracks (43 acres) in the years in which the Hong Kong

contribution increases to 62% and 75% (1977/78 and 1978/79

respectively), subject to the reprovision elsewhere of essential

Service facilities by the Hong Kong Government. These two

areas are already the property of the Hong Kong Government,

which will bear the full cost of reprovisioning. The Agreement

also makes provision for the release for civil use of other

land and buildings no longer required by the British Services.

5. HMG is satisfied that this Agreement is a fair one and

in the interests of both Governments. Hong Kong will have the

assurance of a continued British garrison; and for HMG the

Agreement will provide a valuable contribution to the Defence

Budget.

Ministry of Defence, London

19 December 1975

CONFIDENTIAL UNTIL ISSUED

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