SECRET
the Secretary of State for Defence has proposed to his OPD colleagues that it should run for a period of 7 years in the first instance and should be renewable on the same terms for periods of 5 years thereafter unless either Government gives the other notice a year before the end of each such period that it wishes to vary the terms. This is rather more than the Hong Kong Government have pressed us for and also avoids a commitment to any further negotiations in the future. Mr Rodgers will be anxious that this should not be revealed to the Governor before they meet on Friday to discuss the total package.
1 December 1975
SECRET
Mutte
PL O'Keeffe
Hong Kong & Indian Ocean Dept.