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2. AMENDMENTS TO PARAS. 2 AND 3 HAVE BEEN AGREED WITH M.O.D.,

VIZ:

PARA. 2, LAST SENTENCE TO READ:

''THE NEW AGREEMENT WILL RUN FOR SEVEN YEARS INITIALLY AND WILL BE

RENEWED FOR FURTHER PERIODS OF FIVE YEARS ON THE SAME TERMS UNLESS

EITHER GOVERNMENT WISHES TO VARY THEM.'*

PARA. 3, LAST SENTENCE TO READ:

·

''THE AGREEMENT MAKES PROVISION FOR REVIEWS OF ANY ASPECT OF THE

COSTS OR COMPOSITION OF THE GARRISION, INCLUDING THE COSTS OF THE SUPPORT ELEMENTS, WITH ANY SAVINGS BEING SHARED IN THE SAME PROPOR-

TION AS THE CONTRIBUTIONS.

3. PROPOSED TELEVISION INTERVIEW: I WILL REMAIN MUTE AS YOU SUGGEST.

HOWEVER, IF CONTACTED BY THE PRESS I WILL HAVE TO COMMENT.

4. M.0.U. WAS SIGNED AS PLANNED AT NOON TODAY. OUR COPY IS BEING SENT

TO YOU BY BAG. YESTERDAY'S DEBATE PRODUCED NO SURPRISES AND, INDEED,

THERE WAS ONE HELPFUL REFERENCE TO TEXTILE IMPORTS FROM HONG KONG

BEING ALREADY SUBJECT TO A BI-LATERAL RESTRAINT AGREEMENT WITH THE E.E,C. (WITH A LOWER THAN OVERALL GROWTH RATE). WEBB-JOHNSON WILL

BE SENDING EXTRACTS FROM HANSARD IN THE NORMAL WAY.

CALLAGHAN

AUS(GS)MOD DS6 MOD

FILES HKIOD (4)

DEFENCE D PS

PS/LORD GORONWY-KOBERTS MR LARMOUR

MR CORTAZZI

MR MALE

MR THOMSON

COPIES TO MR ANDREWS MR WARD

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