TNAG-0545-FCO40-640-Strength-of-garrison-in-Hong-Kong-1975 — Page 40

CONFIDENTIAL

4.

(g) for (vii), movements in the quarterly tender price index compiled by PWD, Hong Kong;

(h) for (viii), movements in the annual rents of the flats in Hong Kong in use by the garrison; and

(j) for (ix), movements in actual costs.

The cost of serial (vii) in paragraph 2 is an annual average figure. The means by which the outstanding balance in respect of works services will be adjusted by applying the index in paragraph 3(g) is described in the statement of Financial Procedures.

5.

In respect of paragraph 2(iv) the United Kingdom Government will review the rates of LOA and FSA not later than two years after the commencement of this Agreement. In addition, if at any time the rates in paragraph 2(i) are increased by an amount substantially different from the movement in the Hong Kong consumer price index (B) since the last such increase, both Governments will review the situation to ensure that neither Government contributes disproportionately towards the pay and allowances element of the cost of the Garrison.

B2

CONFIDENTIAL

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