GOLA
Original : NKKKK B $8/3
This Cay for:
Informuan ent//nction on
Para(s)
LORD GOROMUY-ROBERTS'S METING WITH THE GOVERNOR OF HONG KONG:
2 DECEBER 1975
BRIEF NO. 3
DEFENCE COSTS
Line to Take
1.
The Governor will probably not wish to discuss the present stage of the defence costs negotiations in detail in view of his meeting with Hr Rodgers on 4 December.
2.
However, the Minister might like to say that the FCO have strongly supported the Governor's view that the new agreement should be of the longest possible duration and that the Defence Secretary is likely to put forward a formula satisfactory to both sides. We hope that this will contribute to a satisfactory resolution of the other outstanding points.
Background
3.
Hr Rodgers's visit to Ilong Kong resulted in a Heads of Agreement (attached) initialled on 1 November.
4.
A number of outstanding points remained to be resolved
after Mr Rodgers's visit. These included:
(a)
a plan for the return of MCD lands, particularly RAF Kai Tak and Victoria Barracks, to the Hong Kong Government;
(b) the duration of the agreement;
(c) an inflator mechanism to take account of the differir.
levels of inflation in Hong Kong and the United Kingdom;
(a)
an examination of possible further administrative economies in the support costs of the garrison; (e) various details concerning the Memorandum of
Understanding, the statements of financial procedures and the working principles for the works programme.
SECRET
15.
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