TNAG-0542-FCO40-637-Strength-of-garrison-in-Hong-Kong-1975 — Page 177

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

SECRET #2 高度機密

DRAFT

ANNEX TO XCSI(75)2

1.

MEMORANDUM OF UNDERSTANDING

HONG KONG DEFENCE

CONTRIBUTION FROM. 1st APRIL 1976

An Agreement between Her Majesty's Government in the United Kingdom

and the Hong Kong Government:

The size, composition and cost of the garrison for which this Agreement

provides are set out in Annex A.

2.

The Hong Kong Government will contribute to the cost of the garrison

in the following manner:

Details of the make-up and duration to be inserted.

3.

The cost of the garrison is at a September 1974 price level. The

figures for the various components of cost set out in Annexes A and B will be

updated to September 1975 price levels before the 1st April 1976. The Hong

Kong Government contribution as provided for in paragraph 2, will, after

setting off the UK Government's share of expenditure on capital works, maintenance and minor works in the manner described in paragraphs 5 and 8, be

paid by quarterly instalments on the last day of each quarter of the financial

year, with adjustments for changes in the price levels ruling in Hong Kong and

the United Kingdom being made as follows. Before each quarterly payment

becomes due, a calculation will be agreed between the Hong Kong and UK 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 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

G.F. 316

SECRET É*☀Z

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