SECNET
EXTRACT
RECORD OF CONVERSATION BETWEEN THE FOREIGN AND COMMONWEALINI
SECRETARY AND THE GOVERNOR OF HONG KONG HELD AT THE HOUSE OF
COMTIONS ON MONDAY 24 JUNE 1974 AT 3.30 P.M.
Present
The Rt. Hon. James Callaghan MP
Lord Goronwy-Roberts
Sir Murray MacLehose
Sir Duncan Watson
Mr M Wilford
Mr A Acland
Mr AC Stuert
Mr A Galsworthy
1.
40
Mr Callaghan said he would like to put formally on record his congratulations to the Governor for his work in Hong Kong.
Defence Review
2.
Sir Murray MacLchose said that a cerrison must be retinga in Hong Kong for internal security purposes; but any proposal tit Hong Kong should pay more would strain their finances, already heavily committed on new social expenditure. An agreement that they should continue to pay about the present £8 million a year night be negotiable, even though, with a reduced garrison, this might form Creater proportion of the total cost. But the troops should be the cheapest possible. This meant keeping the Gurkhas, who coʻt only a quarter as much per head as British soldiers. At the wo time some UK forces would have to be retained in order to keep the British character of the gerrison.
3.
Mr Callaghan said he took note, particularly about the need for the Gurkhas. But Hong Kong would have to pay a proter proportion of the overall costs. He was not ruling out a coulimmetin of the Hong Kong garrison, but the UK faced a decline in its stenderd of living end there could be no increase in public expenditure.
SECRET
/Hong Kong and the 200