D/MIN/WR/8/7
PERSONAL CONFIDENTIAL
MINISTER OF STATE FOR DEFENCE
PERSONAL AND CONFIDENTIAL
Secretary of State
You are already aware of the outcome of my negotiations with the Hong Kong Government embodied in the Heads of Agreement which I initialled with the Governor on 1 November. You have also seen our joint Press Statement and my own
remarks immediately prior to leaving Hong Kong. However, it may be helpful if I fill in a little background to the events of the week.
2. During the period following your Statement of 3 December last in which you gave your initial conclusions on the Defence Review, extensive discussions had taken place with the Hong Kong
Government on the future size of the garrison. These were based on a commonality of interest, with a proper openness on both sides. But inevitably (and entirely in good faith) they prejudiced the scope for bargaining when real negotiations
began.
I could not hold out the threat of a smaller
garrison when the Chiefs of Staff had already settled on a minimum strength; nor make an issue of the release of such land as we had already agreed to surrender.
3. The Governor's own position was also relevant to my negotiating position. In normal circumstances he is privy to all discussions in Whitehall that affect Hong Kong. He was aware, for example, of the OPD decision on 75%. It required a strenuous effort on my part to conceal what little room for manoeuvre I possessed. For his part, having previously had a foot in both camps, he identified himself from the moment of my arrival wholly with
the interests of Hong Kong.
/I.do
PERSONAL CONFIDENTIA
PERSONAL AND CONFIDENTIAL