PRIME MINISTER
SECRET
M. O'Keeffe (HKIOD)
Enter
3721
Whelton Talu
pu Pu put
18 NOV 1975
Mr Bauform
8/20/1:
PM/75/81
Hong Kong:
Ackol
Defence Costs Agreement'¶//
I believe that the agreement on the size of the Hong Kong
garrison and on the cost sharing formula reached between the
Minister of State for Defence and the Hong Kong Government, as
explained in the Defence Secretary's minute of 3 November, is a
satisfactory one. Like the Defence Secretary, I think the
agreement reflects considerable credit on Mr. Rodgers and his
team.
It was to be expected that Hong Kong opinion would become
exercised over the steep rise in their contribution and I well
understand the Governor's wish that sufficient time should be
allowed to prepare the ground for what may well be unpalatable
news there. The proposed agreement, which includes provision
for a British battalion and a modest British financial contribution,
would be evidence of our continuing commitment to Hong Kong which
should be welcome to opinion in the Colony. China would also be
likely to regard it as satisfactory evidence that the status quo
is to be maintained even though Peking will almost certainly offer
no comment on it. The proposed release of land should do
SECRET
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