RIGE

ge

28 OCT 1975

CONFIDENTIAL covering SECRET

Private

Secretary

12

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du. Ja 333 24/10/2, dim

-28/10

Mr Male Male

HONG KONG DEFENCE COSTS NEGOTIATIONS

1.

You said that Lord Gerenwy-Roberts's Private Office

had queried whether the Secretary of State should send as full a minute to the Prime Minister as that proposed in the draft attached to my submission of 22 October in view of the fact that the Prime Minister has already approved the Defence Secretary's proposal 376) (Mr Wright's letter of 22 October to the MOD). This means, of course,

that three members of the OPD - the Chancellor, the Defence Secretary and, now, the Prime Minister - are agreed on the proposal. If the Secretary of State were alse to agree, he could say so, if he wished, without going int● the arguments set out in the draft minute.

2.

My own view is that there would still be advantage in putting a reasonably full FCO position on record. I have a feeling that the negotiations are likely to drag on for some time. (I think that Mr Rodgers will de very well if he can arrive at an agreed settlement during the course of a week.) If that is so and, of course, it is anyone's guess I would prefer that we should say something along the lines of the draft minute at this stage.

3.

-

Clearly, the draft minute should now take account of the Prime Minister's agreement to the Defence Secretary's proposal and I have tentatively written in one or two changes to cater for this.

23 October 1975

On reflecha, preferable (given that

sailing, I fear)

D.F. Meilm

D F Milton

Hong Kong & Indian Ocean Dept.

that it would be

I think that

the future will not be plain

that the

That

the

amented draft

so farwand

Ps Lad

Gofancy.

Rebat

Yes, but

1

can see

no

ProMah

shalt

23/x

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the

punt in Gunbanding

пред iv

P.M. with minutes when he has already agreed. Smely shuld go to M. Masm.

Zelialswathy 24/x

CONFIDENTIAL covering SECRET

ir

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