TNAG-0544-FCO40-639-Strength-of-garrison-in-Hong-Kong-1975 — Page 77

CONFIDENTIAL

7. ANNEX B. ALTHOUGH WE ARE NOT QUITE READY TO PUT FORWARD A FIRM PROPOSAL FOR THE WORDING OF ANNEX B WE ASK YOU TO CONSIDER THE FOLLOWING:

"' 1. THE HONG KONG GOVERNMENT CONTRIBUTION TO BE PAID IN ACCORDANCE WITH PARAGRAPH 3 OF THE AGREEMENT WILL BE ADJUSTED TO ALLOW FOR CHANGES FROM SEPTEMBER 1975 PRICE LEVELS IN THE FOLLOWING

MANNER.

2. THE COST OF THE GARRISON DESCRIBED IN ANNEX A HAS BEEN DIVIDED INTO THE COMPONENTS LISTED BELOW IN THE FIRST COLUMN AND THE RESPECTIVE AMOUNTS OF COST SET OUT IN STERLING AND HONG KONG DOLLARS ARE SHOWN IN THE SECOND COLUMN.

(THE COLUMNS ARE THEN SET OUT).

3. THE CHANGES IN COSTS OF THE ABOVE COMPONENTS WILL BE ASSESSED BY APPLYING THE FOLLOWING MEASURES

(A) FOR (1), MOVEMENTS IN BASIC RATES, WHEREVER THE PERSONNEL ARE SERVING:

(B) FOR (11), MOVEMENTS IN BASIC RATES:

((C) ONWARDS AS BEFORE).

PARAGRAPH 4 TO BE DELETED AS UNNECESSARY.

8. ANNEX C WILL LIST THE LAND RELEASES. WE ASSUME THAT WE CAN AGREE THIS WITH HQBF AND ADVISE YOU?

ROBERTS

FILES

HKIOD (3)

DEF D

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3

CONFIDENTIAL

COPIES TO:

MR.ANDREW,

AUS.,MOD.