SECRET
(a)
(b)
A joint working party is to meet and report by 28 November on the question of the release of MOD lands, particularly
RAF Kai Tak and Victoria Barracks.
The duration of the agreement remains to be settled. Mr Rodgers did not have authority to go for more than
a five year agreement, but has recommended to the Defence Secretary that we should accept seven years.
(c) There will be further examination of the question of
some mechanism to take account of differing levels of inflation in Hong Kong and the United Kingdom.
(a) There will be a further examination of possible economies
in the support costs of the garrison, but not of its actual shape and size. (The Heads of Agreement provides, as envisaged, for 473 teeth arm units, five naval patrol
4,
craft (instead of a frigate), and eight helicopters etc
at £42.5m a year.)
As you will see from the telegram referred to in paragraph 2(iii),
the press statement does not indicate the level of Hong Kong's
contribution. The Unofficials have remained insistent that these
points and other details of the agreement so far reached should not
be released until Hong Kong is satisfied on the outstanding points, particularly that of the release of MOD lands.
D.F. Millen.
3 November 1975
CC:
Mr Cormack, Defence Dept Mr Sykes, DUSS
SECRET
لدورة
D F MILTON
Hong Kong and Indian Ocean
Department
Premale
[12 67/11