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ANNEX 'B'
3.
The changes in costs of the above components will be assessed
by applying the following measures:
A. for (i)
Movements in basic rates wherever the personnel are serving.
B. for (ii)
Movements in basic rates.
C. for (iii)
Movements in actual wage rates.
D. for (iv)
4.
E. for (v)
F. for (vi)
G. for (vii)
Changes in promulgated rates assessed in accordance with the service-wide practice for LOA and with the Civil Service practice for FSA.
Changes in rates as promulgated.
Movements in the Monthly Consumer Price Index (B) in Hong Kong.
Movements in the Quarterly Tender Price Index compiled by P. W. D., Hong Kong.
H. for (viii) Movements in the annual rents of the flats
in Hong Kong in use by the garrison; and
J. for (ix)
Movements in actual costs.
..
The cost of the Serial (vii) in paragraph 2 is an annual average figure. The means by which the outstanding balance in respect of works services will be adjusted by applying the index in paragraph 3 is des- cribed in the Statement of Financial Procedures.
5.
In respect of paragraph 2 (iv) the United Kingdom Government will review the rates of LOA and FSA not later than two years after the commence- ment of this Agreement. In addition, if at any time the rates in paragraph 2 (i) are increased by an amount substantially different from the movement in the Hong Kong Consumer Price Index (B) since the last such increase, both governments will review the situation to ensure that neither government con- tributes disproportionately towards the pay and allowances element of the cost of the garrison.
G.F. 316
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