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JAICK 3/548/3
RECORD OF A MEETING BETWEEN THE FOREIGN AND COMMONWEALTH SECRETARY AND THE GOVERNOR OF HONG KONG HELD AT THE FOREIGN AND COMMONWEALTH OFFICE ON THURSDAY 4 DECEMBER AT 9.45 A.M.
Present
cibul
The Rt Hon James Callaghan MP
Sir Murray MacLehose KCMG KCVO
MBE
Mr P L O'Keeffe CVO
Mr T McNally
Mr R N Dales
Visit to Hong Kong
1.
Welcoming the Governor, Mr Callaghan said he was looking forward to his visit to Hong Kong. His last visit had involved a good deal of on-site inspection of development projects. He assumed that on this occasion the Governor would wish him to talk to various
groups of people. Sir Murray MacLehose confirmed that this was so. He also hoped that Mr Callaghan might make a speech during his visit. Mr Callahan agreed on the assumption that the draft would be prepared by the Hong Kong Government.
Defence Costs Agreement
2.
Mr Callaghan congratulated the Governor on the work that has been done to conclude a satisfactory defence agreement with Hong Kong. Sir Murray MacLehose explained that in his view a continuing British financial contribution was politically most important. Mr Callachan said that HMG was still actively seeking further cuts in defence
HILNAS, HILM expenditure. He could make no promises about the Hong Kong garrison
but would use his influence in favour of the conclusion of the present agreement.
3. Sir Murray MacLehose added that it would be difficult to sell the defence agreement to Hong Kong opinion if unilateral restrictions were placed on Hong Kong's textile imports into this country. He explained that Mr Shore was opposed to Mr Varley's suggestion of import restrictions on Hong Kong woven shirts and hoped that
Mr Callaghan would support Mr Shore when the matter came to be discussed by Ministers. Mr O'Keeffe added that he had heard that Mr Mason was
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/also opposed