GAPS 250 IMMEDIATE
CATHET/CAT A
C O 16172 Z
SECRET
SECRET
4831
[(483) 489 (491)
TC IMMEDIATE HONGKONG TELEGRAM NO 961 OF 16 DEC 1975.
FOR DAVIES FROM ANDREW (MOD)
DEFENCE COSTS AGREEMENT
1. THE MINISTER OF STATE SPOKE THIS MORNING TO THE GOVERNOR
AND INFORMED HIM THAT THE STATEMENT ON IMPORT RESTRICTION WHICH
WILL BE MADE BY THE CHANCELLOR OF THE EXCHEQUER IN A PARLIAMENTARY DEBATE ON EMPLOYMENT TOMORROW WILL NOT (REPEAT NOT) INCLUDE IMPORTS FROM HONG KONG. SUBJECT TO ANY UNEXPECTED DEVELOPMENT IN THE DEBATE THE GOVERNOR HAS AGREED THAT THE DEFENCE COSTS AGREEMENT SHOULD BE
ANNOUNCED ON FRIDAY 19 DECEMBER. THIS WILL BE DONE IN LONDON BY MEANS OF A WRITTEN ANSWER TO A PARLIAMENTARY QUESTION, ACCOMPANIED
BY A PRESS STATEMENT WHICH WILL BE ISSUED AT 1100 HOURS LONDON TIME. PRESUMABLY YOU WILL WISH TO MAKE YOUR ANNOUNCEMENT AT THE SAME TIME.
2. THE MINISTER OF STATE HAS AGREED TO THE FOLLOWING AMENDMENTS
TO THE MORANDUM OF UNDERSTANDING AND PRESS STATEMENT:
MEPORANDUM OF UNDERSTANDING: PREAMBLE IN 8TH LINE DELETE QUOTE CAN UNQUOTE AND SUBSTITUTE QUOTE WILL UNQUOTE.
PARAGRAPH 3. AFTER QUOTE WILL RUN UNQUOTE IN FIRST LINE INSERT
QUOTE FROM 1ST APRIL 1976 UNQUOTE.
PRESS STATEMENT: PARAGRAPH 2 AVEND FIRST SENTENCE TO READ
QUOTE..... BUT WHICH WILL BE REINFORCED SHOULD CIRCUMSTANCES SO
REQUIRE UNQUOTE. AMEND 4TH SENTENCE TO READ QUOTE....
COMPARED WITH A CONTRIBUTION IN THE CURRENT FINANCIAL YEAR OF ABOUT
POUNDS STERLING 11 MILLION UNDER THE PRESENT AGREEMENT UNQUOTE.
PARAGRAPH 4 - DELETE FROM FIRST SENTENCE QUOTE IN CONSIDERATION OF
THE SUBSTANTIAL INCREASES IN HONG KONG'S FINANCIAL CONTRIBUTION.
UNQUOTE
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