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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.
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Present
The Rt. Hon. James Callaghan MP HE Sir Murray MacLehose KOMG MBE Mr P L O'Keeffe OVO
Mr T McNally
Mr R N Dales
DEFENCE COSTS
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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 discussel 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.
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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.
Hong Kong & Indian Ocean Department
16 April 1975
Distribution
PS
PS/Mr Ennals
PS/Lord Goronwy-Roberts
Sir D Watson
Mr Wilford
Mr Male
Mr McNally
FED
Defence Dept.
OLA
Legal Advisers
G&GD
co (Personal).
HE Sir Murray Marhahne Rethi R
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