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RECORD OF CONVERSATION BETWEEN THE FOREIGN AND COMMONWEALTH
SECRETARY AND THE GOVERNOR OF HONG KONG HELD AT THE FOREIGN
AND COMMONWEALTH OFFICE ON FRIDAY 11 APRIL 1975 AT 11.30 A.M.
Present
The Rt. Hon. James Callaghan MP
Mr P L O'Keeffe CVO
Mr T McNally
Mr R N Dales
HE Sir Murray MacLehose KCMG MBE
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DEFENCE COSTS
1.
Mr Callaghan said that pressure had developed for further cuts in defence over and above those announced in the Defence Review. He appreciated that the Colony also had budgetary problems but that he must advise the Governor that Hong Kong would need to find more money to cover the costs of the garrison or else go short. Sir Murray MacLehose said that he had discussed the possibility of further reductions in the size of the garrison with the Minister of State for Defence, Mr Rodgers. He was hopeful that a solution to the problem would be found.
2.
Mr Callaghan said that the decision on force levels
obviously depended to a large extent on the future attitudes of the Chinese. Sir Murray MacLehose observed that the Chinese were being conspicuously helpful at present.
POLITICAL ATTITUDES IN THE UK
3.
Mr Callaghan said that the reputation of Hong Kong did not stand particularly high in the Labour movement generally in the United Kingdom. Mr McNally added that criticism seemed focussed on three issues: the compatibility of Hong Kong's labour legislation with the Conventions of the ILO; the low wage rates for Hong Kong seamen which attracted the attention of our own National Union of Seamen; and the social composition of the Legislative Council which some elements of the Labour Party considered to be too narrowly based.
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