AGISTRY No.52 22 MAY 1975
GR 95
→KKID
CONFIDENTIAL
63
PRIORITY
CYPHER/CAT A
FM HONG KONG 220900Z
CONFIDENTIAL
TO PRIORITY FCO TELNO 512 OF 22 MAY.
FOR SIR DUNCAN WATSON FROM GOVERNOR.
DEFENCE COSTS AGREEMENT
Low]
165
WHEN I WAS IN LONDON IN EARLY APRIL IT WAS AGREED MOD WOULD PRODUCE A DRAFT AGREEMENT, LEAVING BLANK THE FIGURES FOR THE LEVEL OF GARRISON AND DIVISION OF COSTS.
2.. I HOPE YOU REALISE THAT IT WOULD BE DIFFICULT, IF NOT IMPOSSIBLE, TO PURSUE FURTHER WITH UNOFFICIALS THE CRUCIAL QUESTIONS OF FORCE LEVELS AND COST ALLOCATION EXCEPT IN THE CONTEXT OF A DRAFT AGREEMENT SETTING OUT ALL OTHER RELEVANT ARRANGEMENTS, THE LATTER MIGHT TAKE SEVERAL WEEKS OF TELEGRAPHING TO AGREE, AFTER RECEIPT OF A FIRST DRAFT, AND THE MORE I AM OBLIGED TO RUSH THE FORMER THE MORE
DIFFICULT IT WILL BE TO HANDLE.
3. WHEN MAY I EXPECT A DRAFT?
MACLEHOSE
FILES
HKLOD
SIR D WATSON
MR WILFORD
MR MALE
CONFIDENTIAL