CONFIDENTIAL covering SECRET
317
The Mill
pa
ton Ww
Sir D Watson
Wats
22/10
HONG KONG: DEFENCE COST NEGOTIATIONS
1.
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Mr Rodgers, Minister of State at the MOD, will be holding
a briefing meeting in his office at 5.30 p.m. tomorrow, Tuesday 21 October, in connection with his visit to Hong Kong from
26 October to 1 November. We have informed the MOD that either
Sir Duncan Watson or Mr Male, accompanied by a member of HKIOD, will
attend.
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2.
I attach a set of the draft briefs which have been
I suggest you look at the following:
311) submitted to Mr Redgers.
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314)
(146)
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A. Steering Brief on which we, in the Department, have only minor points of detail. The Section on "UK Negotiating Tactics" will need to be revised in the light of the Secretary of State for Defence's minute of 17 October to the Prime Minister to which is attached
copies of an exchange of letters between Mr Rødgers and the Chancellor of the Exchequer. The MOD would like us to weigh in my support of Mr Rodgers being given more flexibility if it is necessary to conclude an agreement with Hong Kong. In considering this point, which can be handled separately from Mr Rodgers's meeting, we shall need to be guided by the view expressed by the Secretary of State when he saw the Governor on 11 April, namely, that "Hong Kong would need to find more money to cover the costs of the garrisen or else go short" (record of meeting attached).
B. Opening Statement in Hong Kong by Minister of State the draft, which takes account of Treasury and FCO comments, should now be read together with Hong Kong telegram no. 1033. The Governor's advice about the points which Mr Rodgers might make in his opening
statement to the Executive Council and members of the Finance Committee of the Legislative Council and the
CONFIDENTIAL covering SECRET
/order in