PRIME MINISTER

SECRET

CHIEF

UK EYES 'A'

ST MON

SECRETARY TO THE

HONG KONG: DEFENCE CONTRIBUTION

TREASURY

Da

33

HKIOD india Lord fornyfy Robec te

« PS

Wa

I have seen the Defence Secretary's minute to you of 17 October and I confirm Treasury Ministers' agreement to the limited measure

of discretion proposed. Whether or not further concessions should

be offered cannot be decided until we receive a first hand account

of the Hong Kong reactions to our opening bid. In any event, we should not table a more generous offer on the lines of Option B

unless we are satisfied that it will result in a settlement. I believe that Option C goes well beyond what we should be prepared

to contemplate.

I am copying this minute to the Defence Secretary, to the other

members of OPD and to Sir John Hunt.

C

**0.01

27 OCT 1975

HKK 10),

LAST

RE

314

RIF.

24 October 1975

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