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HULK 2/508 HKILOT
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GOVERNOR OF HONG KONG: CALL ON SECRETARY OF STATE
1.. Sir Murray MacLehose will be calling on the Secretary of State at 9.45 a.m. tomorrow. The Governor last called on the Secretary of State on 11 April: I attach a copy of the record of that meeting. The following topics might be covered tomorrow.
Defonce Costs Arreement
3.
Wo nro in night of a final agreement on defence costs which will provide for a smaller garrison; incrousing Hong Kong contributionu rising from 50% to 75% over the first three yoaru; and the roleano by the Services of prestige land in the central arena of Hong Kong and Kowloon. Officials from both sides are meeting this week and the Governor is calling on the Minister of State for Defence on Friday 5 December when it is hoped to conclude matters. The only major outstanding matter is the duration of the agreement,
The Secretary of on which please see my minute of today's date. State for Defence's formula will probably be welcomed by the long Kong Government.
I.
The Governor will probably mention to the Secretary of State that the imposition of any restrictions on llong Kong's textile impots into this country is bound to increase the problem of selling the defence agreement to llong Kong opinion. Lord Goronwy-Roberts has rinuted to the Secretary of State on this subject. I recommend, that the Secretary of State should say that he will oppose such import etrols but cannot of course commit his colleagues at thi top
3 December 1975
CC
+
Sir D Watson
fr Larmour
Hr Cortazzi Hr Male
Ar
McNally
PL O'Keeffe
Hong Kong & Indian Ocean Dept.