SECRET
For discussion
on 9th December 1975
3
31
Sofs
XCS(75)8)
Copy No... of 40
MEMORANDUM FOR EXECUTIVE COUNCIL
458
DEFENCE COSTS AGREEMENT
никюр
448
On 2nd December 1975, memorandum XCS(75)6 was discussed in a joint session of the Executive Council and the Finance Committee.
A
2
The advice tendered at the end of this combined meeting was subsequently confirmed by the Executive Council. The relevant part of the Executive Council Minutes is at Annex A.
B
3
The Financial Secretary has informed the Acting Governor by telegram that after two days of exchanges between Hong Kong and British Officials, a draft of the Memorandum of Understanding and Annexes (attached at Annex B) was produced for submission to the meeting held between the Governor and Mr Rodgers on the morning of Friday, 5th December.
4
Agreement was reached at that meeting on all outstanding questions which Officials had been unable to settle in their earlier discussions. The Financial Secretary informed the Acting Governor that the version provisionally agreed between the Governor and Mr Rodgers, subject to the approval of the Executive Council, appears to the Governor to be satisfactory.
5
The various requirements and conditions put forward by Honourable Members on the 2nd December (contained in Annex A) have been met in the Memorandum of Understanding as follows:
(a) Victoria Barracks
Part 1 of Annex C to the MOU indicates that the entire area of Victoria Barracks - including Flagstaff House but excluding about four acres in the Dragon House
area
-
will be vacated.
(b)-(c) RAF Kai Tak
Agreed. See Part 1 of Annex C to MOU.
(d) Compensation by Hong Kong Government
This requirement has been met in paragraph 10 of the MOU, not only for releases covered by the Agreement but for all future releases.
(e) Release of Land
The other areas to be surrendered are now listed in Parts 2 and 3 of Annex C to the MOU.
SECRET