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XCS(75)8

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(f) Contributions Conditional on Releases

It is provided by paragraph 2 of the MOU that the increased contributions of 62% and 75% are conditional on the release of Kai Tak and Victoria Barracks by the due dates. There is provision for a postponement of the increased contributions if any delays are the responsibility of the UK Government.

(g) Length of Agreement

This is to be 7 years

see paragraph 3 of MOU

·

renewable

on the same terms for further periods of 5 years by mutual agreement.

:

(h) Reference Back to the Executive Council

This paper complies with this requirement.

(i)-(j) Announcements

This is dealt with below.

(k) HMG's Commitment

This is stated in the Preamble to the MOU.

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Paragraph 12 of the MOU meets this. It provides for an examination of the costs, complement or composition of the garrison at any time and for detailed reports on the costs and complements of the support element as soon as may be appropriate after the 1st April

1977.

Conclusion

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It therefore appears as if all the points made by Honourable Members during the discussion on 2nd December have been met in full by HMG. Consequently Members may feel that they are now able to advise that the Agreement should be formally concluded by the Governor on behalf of the Hong Kong Government subject to the considerations discussed below.

Announcement

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If Members advise that the Agreement should be formally concluded, it will be necessary for a joint announcement to be made by both Governments at an agreed time. A copy of the proposed announcement will be circulated to Members as soon as it is received from London. It is hoped that this will be available at the meeting of the Executive Council on 9th December.

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It is the Governor's intention to issue a personal comment in London on the conclusion of the Agreement, at the time of the announce- ment of it. It is hoped that copies of this will also be available to Members on Tuesday 9th December.

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