G.F. 323
CONFIDENTIAL # ≈
2.
follows.
>
Before each quarterly payment becomes due, a calculation
will be agreed between the Hong Kong and U. K. Governments of the
changes necessary to adjust each of the separate components of the
garrison cost (other than capital works, maintenance and minor works)
listed in Annex B to the levels ruling at the beginning of that quarter.
The indices or other measures to be used in calculating these adjust-
ments 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
Subsequent instalments will include the adjustments in relation
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.
1976.
4.
All payments by the Hong Kong Government will be made in Hong
Kong dollars. Where these payments relate to components of cost in-
curred in sterling as indicated 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's contri-
bution will be set out in the STATEMENT OF FINANCIAL PROCEDURES
to be agreed between the two Governments.
CONFIDENTIAL
#para. 5.
機密