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Mr Jackson (Defence Dept)
DEFENCE REVIEW HONG KONG
1.
RECE REGIST
- 5 SEP 1974
HKK 10/9
I attach as agreed a draft passage for the Secretary of State's brief. You said you would add this to the main body of the brief and submit it through the PUS.
2.
It seems likely from our discussion with the PUS that the next meeting of the DOP will either not reach the question of Hong Kong or will concentrate on the timing aspect of consultations as set out in the minutes to the Prime Minister by the Chancellor of the Exchequer and the Secretary of State. I have therefore divided the brief into two halves, on timing and on substance, and have put the section on timing first.
3. On substance, Mr Thomson said that he thought the main defect of the Defence Review Steering Committee's paper in its present form is that it is too favourable to the FCO and is likely to be rejected out of hand by the Ministers. As you know, the Governor also told me in private conversation that he was resigned to the expectation that the team sent to consult with the Hong Kong Government would be briefed to ask for a 100% contribution by Hong Kong and that Ministers would not retreat to the 50/50 concept until it became completely clear as the result of these consultations that 100% was not on.
I therefore agreed with him that the essential elements of a Ministerial decision now were that Hong Kong must have a garrison sufficient for internal security, whoever paid for it, and that no final decision should be taken that Hong Kong must meet the whole cost itself.
4. I have drafted the brief with these points in mind. However, given that the Secretary of State is predisposed to believe in the 100% concept, you may wish to consider whether we are giving too much away by proposing a fall- back which might mean that the chances of Ministerial agreement to the 50/50 concept would be lost from the beginning. If there is a real chance of such agreement, we should not prejudice it and should perhaps redraft the brief, urging the Secretary of State to give nothing away at this stage.
LAST
REF
NEXI
REF
(95) at
5 September 1974
copy
DCSL
A C Stuart
Hong Kong & Indian Ocean Dept
(with enclosure) or Male.
Sent
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194.
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