SECRET UK EYES A
2
4. The Governor of Hong Kong was most insistent that details of the financial agreement should not be released until he had had time to prepare opinion in Hong Kong for the very large increase which is to occur in the colony's contribution to the costs of the garrison. For this reason the Heads of Agreement are to be kept confidential for another month or so, during which time the detailed work referred to in the previous paragraph will be completed. Accordingly, it was possible to issue only a brief and guarded press statement before the Minister of State left Hong Kong: copy at Annex B.
5.
This agreement, and in particular the securing of a 75% contribution from Hong Kong in the third year, seems to me as good an outcome from the negotiations as we could have expected; indeed, I believe it reflects considerable credit on the Minister of State for Defence and his team. There is still some detailed work to be done; and strenuous efforts will be needed if plans are to be drawn up and new accommodation provided to enable us to vacate Kai Tak and Victoria Barracks in the timescale desired by Hong Kong. Meanwhile, the only outstanding issue seems to be whether the new agreement should last for 5 years or 7. The Minister of State has not committed us beyond 5 years; but there is evidently strong pressure from the Hong Kong side for a longer agreement in the interest of stability and they have urged that we should agree to 10 years, or at least 7. This will clearly need further consideration.
6. The Minister of State for Defence, is visiting Diego Garcia on the way back from Hong Kong, but I shall be receiving a detailed report from him on his return tomorrow morning. Meanwhile I thought that it would be helpful to colleagues to know the current state of play before OPD tomorrow.
7. I am sending copies of this minute to OPD colleagues and to Sir John Hunt.
R.m
3rd November, 1975.
SECRET UK EYES A