GR 600
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FM HONG KONG 150830Z
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RECEIVED REGISTRY No.52)
27 NOV 1974
NICKIO/9
गगल
216
TOP COPY
Sile
to
PUTiz Das
TO ROUTINE FCO TELNO 1143 OF 15 NOVEMBER 1974
FOR SIR DUNCAN WATSON:
HONG KONG DEFENCE REVIEW.
I HAVE BEEN REFLECTING ON THE SITUATION THAT HAS EMERGED FROM
THE DISTURBING BUT OBVIOUSLY VERY NECESSARY MEETING RECORDED IN 'SO) YOUR TEL. 923. WE ARE ALMOST BACK TO SQUARE ONE.
2. IN THEORY THERE IS PLENTY OF TIME SINCE YOU AGREE THAT NO
ANNOUNCEMENT OR FORMAL DECISION BY EX. CO. NEED BE MADE BEFORE NEXT MAY. BUT IN PRACTICE IT WILL BE INCONVENIENT, AND PARTICULARLY THE SERVICES HERE, IF WE DO NOT KNOW HOW WE STAND BY EARLY NEXT YEAR, I THEREFORE PROPOSE THAT WE TRY TO GET THE GUIDELINES OF AN AGREEMENT SETTLED BETWEEN US IN DECEMBER/JANUARY. THIS SHOULD. BE EASIER ONCE THE COSTINGS PROMISED FOR THE END OF NOVEMBER ARE
AVAILABLE, THOUGH I EXPECT THESE WILL NEED TO BE DISCUSSED BETWEEN OUR TEAMS, I ENVISAGE TRYING TO OBTAIN SUFFICIENT AUTHORITY FOR THE GUIDELINES FOR THEM TO PROVIDE A BASIS FOR PLANNING, BY MEANS OF INFORMAL SOUNDINGS AND DISCUSSION IN EX. CO. THE FINAL DETAILS OF THE AGREEMENT COULD BE LEFT FOR NEGOTIATION AND SUBMISSION TO EX. CO. AND SUBSEQUENT ANNOUNCEMENT IN LATE SPRING/ EARLY SUMMER, AFTER THE '75/76 BUDGET HAS BEEN DISPOSED OF.
3. DO YOU AGREE WITH THIS TIMING AND PROCEDURE?
4. IF SO, WE WILL NEED A FORMULA FOR WHAT IS SAID IN PUBLIC MEANWHILE. I THINK THAT MISS LESTOR'S REPLY TO SIR A. ROYLE PROVIDES A GOOD ONE THAT SHOULD STAND UP FOR THE NEXT SIX MONTHS, DURING WHICH THE FACT THAT THE PRESENT DEFENCE COSTS AGREEMENT
DOES NOT EXPIRE TILL 176 ENABLES US TO PUT ARRANGEMENTS FOR HONG KONG IN A DIFFERENT CATEGORY TO OTHER PARTS OF THE DEFENCE REVIEW.
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