CONFIDENTIAL UNTIL 221000 DEC

ANNGA A

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PRESS RELEASE: HONG KONG

RELEASE OF MOD LAND HOLDINGS

At the request of the Hong Kong Government, the United Kingdom and Hong Kong Governments have agreed that Lyenum Barracks (72 acres), Shamshuipo Camp (12 acres), Bowring Camp in the New Territories (17 acres) and Tudor Court in Kowloon (1 acre) will be released by the Ministry of Defence as soon as the reprovisioning of essential facilities elsewhere has been completed. The units of HM Forces which currently occupy the areas to be released will be relocated in areas already occupied by the garrison.

2. The Hong Kong Government will meet the estimated cost $HK 158 million of the essential reprovision, and will also meet the cost of SHK 58 million of a number of capital works for the garrison which are additional to those provided for by the Defence Costs Agreement which came into force on 1 April 1976.

3. The effect of these arrangements will be to concentrate the Garrison's facilities and improve the operational and administrative efficiency, and to release land in the urban areas to the Hong Kong Government. The latter hope that the site at Lyenum will be used for a public housing estate and for the home ownership scheme. The land at Shamshuips will allow a number of improvements to be made in the town planning of the area.

4.

This further agreement does not affect the existing Defence Costs Agreement.

CONFIDENTIAL UNTIL 221000Z DEC

NMAL

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