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PS/Lord Gorghwy-Roberts
Gorghw
HONG KONG DEFENCE COSTS AGREEMENT
1.
Mr. Militan
+75
*-yes.
18/xil
Many thanks. This hired us
when
we were in
Luxembang,
Lis, lamh, now y
overtaken
You sent me a copy of your minute of 12 December about the -amendments you effected to Mr Rodgers's letter of 12 December to the the Governor of Hong Kong. I have since seen a copy of Mr Sandars's letter of 12 December confirming that the amendments were in fact made.
2.
You will have seen from FCO telno. 957 that the Governor telegraphed the text of Mr Rodgers's letter to Hong Kong over the weekend. The Governor telephoned this morning to say that his position regarding the timing of an announcement of the Defence Costs Agreement remained as before, namely, that it should not coincide with an announcement on import controls affecting Hong Kong (Mr O'Keeffe's submission of 9 December). He then said that he would not object to an announcement of the Defence Costs Agreement on 19 December provided either that the import controls package would not be made public until after the New Year or that he could be given an assurance that there would be nothing of much significance in it for Hong Kong. The Governor said that he was thinking of replying today to Mr Rodgers in these terms. I told the Governor that the whole question of import controls was due to be discussed by Ministers today and there was a chance that, within 24 hours or less, the position as regards Hong Kong would be clarified. I also told him, in general terms, of the latest state of play on import controls, mentioning that the FCO view on import controls as they affect Hong Kong had been put on record i.e. Mr Ennals's minute of 12 December to the Prime Minister. therefore discouraged the Governor from replying today to Mr Rodgers's
letter.
I
3.
The Governor subsequently spoke in similar terms to Mr Andrew in the MOD. He left it with him that either the MOD or we will let him know tomorrow morning, 16 December, how matters stand on import controls. The Governor has since sent a telegram to Hong Kong giving his reactions to Mr Rodgers's letter, indicating that the question of import controls as they affect Hong Kong may be resolved.
SECRET
/satisfactorily