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2.
than works services) listed in Annex B to the price levels ruling at the beginning of that quarter. The indices or other measures to be used in calculating these adjustments are set out in Annex B, and the adjustments will be calculated by references to the month by month movements in the indices and other measures, assuming that one twelfth of the annual cost of the garrison falls in each month of the year. The instalment to be paid at the end of June 1976 will include the adjustments so calculated up to 1st April 1976. Subsequent instalments will include the adjustments in re- lation to both the quarter of payment and the immediately preceding quarter. After the end of the period of the Agreement, a calculation will be made of any further adjustments needed and a final settlement will take place.
5.
All payments by the Hong Kong Government will be made in Hong Kong dollars. Where these payments relate to components of cost expressed in sterling in Annex B, the conversion will be made at the average rate of exchange for the quarter. Detailed provisions for the calculation and payment of the Hong Kong Government contribution will be set out in the Statement of Financial Procedures to be agreed between the two governments.
6.
The United Kingdom and Hong Kong Governments will from time to time agree programmes for works services in respect of the garrison includ- ing capital works, maintenance and minor works (as defined in the Statement of Works Procedures provided for in paragraph 9). The capital works pro- gramme
(1)
(2)
(3)
Shall provide adequate facilities for the garrison;
shall facilitate the release of land surplus to the requirements of the garrison;
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 shall not exceed HK$413 m. adjusted in accordance with Annex B. The expenditure shall 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% 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.
7.
By agreement, the Property Services Agency may undertake capital works for the convenience of either the Hong Kong Government or the United Kingdom Government.
G.F. 316
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/ para. 8.
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