**

CONFIDENTIAL A

--*

From:

R. J. E.-Abraham

Head of Defence Secretariat 6

MINISTRY OF DEFENCE

Main Building Whitehall London SW1A 2HB

Telephone 01-218 7036(Direct Dialling)

01-218 9000

(Switchboard)

P. L. O'Keefe, Esq, CVO

Hong Kong Department

Foreign and Commonwealth Office

King Charlest Street

London SW1A

RECEIVED IN

REGISTRY Na 51

15 JUL 1975

4ICK 15/1

Your reference

Our reference

D/DS6/46/66/1

Date

Copy to: Mr Jackson, Defence Department, FCO

Mr Fitchu, Treasury

July 1975

NEX

REF.

Overtaken

PA

B)

1417

LAST

#.

214

206

Dean O' Roofe

Reage

HONG KONG: DEFENCE COSTS

Reference: FCO letter HKK/10/1 of 7th July 1975

Bruce Dinwiddy will no doubt have mentioned to you my reactions to the draft telegram he circulated earlier this week for you to send on a personal net to the Governor about aspects of the negotiations on the costs of the Hong Kong Garrison,

My immediate reaction in particular was that once Ministers have taken decisions, Departments concerned would have to consider both the terms in which HMG's position on cost sharing and on the recommended size of the Garrison are to be put formally to the Governor; and closely related to this, the sort of pattern of negotiations we feel will be most constructive, including exactly what our initial stance is to be. It follows, therefore, that until these consultations have taken place it might not be desirable to give the Governor any too precise an impression, for example of timescales. I have since spoken to Robert Andrew here, whose reaction is similar. He believes it might be useful to plan provisionally to meet again under his Chairmanship, as we previously did whilst drafting the paper for Ministers, as soon as Ministerial decisions are known to discuss how we are to handle the negotiations. In particular we believe there is room to discuss the advantages and disadvantages of an early approach to the negotiating

table.

I hope you will feel it will be useful to plan to have a meeting of this kind about the middle of next week, although we will not make the firm arrangements until we know the final views of Ministers.

-12 VTIAL CONFIDENTIAL

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