TNAG-0541-FCO40-636-Strength-of-garrison-in-Hong-Kong-1975 — Page 25

CONFIDENTCONFIDENTIAL

CONFIDENTIAL

Subsequent

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.

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.

4. 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.

5. The United Kingdom and Hong Kong Governments will from

time to time agree and the Hong Kong Government will undertake

and, in the first instance, meet the expenditure on a programme

of capital works, to provide adequate facilities for the

garrison and to facilitate the release of land surplus to the

requirements of the garrison. The programme, which may include

purchases of buildings for the garrison, will be carried out to

normal United Kingdom standards and scales in Hong Kong.

ture will be spread as evenly as practicable over the period of

the Agreement. Estimated expenditure under the programme will

be not less than $

accordance with Annex B.

will be

nor more than g

Expendi-

adjusted in

The Hong Kong Government contribution

% of the actual expenditure under the programme

and the remaining

% will be set off against the quarterly

payments provided for in paragraph 3.

CON¿DENTIAL

CON

TIAL

CONFIDENTIAL