SECRET

4720

Hr Arbuthnott (EID(E))

HONG KONG DEFENCE COSTS AGREEMENT

As I told you on the telephone, I have pointed out to ir Rodgers' office in the MOD that the last sentence of paragraph 2 of Mr Rodgers' letter to the Governor of Hong Kong of 12 December is inaccurate, might lead to complications in the negotiations between Hong Kong officials and the Commission in Brussels, and cuts across Mr Ennals letter of this morning to the Prime Minister. Mr Rodgers' office have agreed to remove this sentence from the letter, and to amend the beginning of the following paragraph to read: "In the light of this problem, I agreed reluctantly .....".

2. The letter as it now stands therefore is merely a renewed plea to the Governor to agree to early announcement of the Defence Costs Agreement on the grounds that further delay could put at risk the terms which have already been agreed. I suggested that MOD should keep closely in touch with the FCO early next week when it seems possible that the question of import restrictions against Hong Kong may be resolved.

12 December 1975

CC: PS

PS/Mr Ennals

PS/PUS Mr Male

Mr Milton, IKIOD

Редалий

A C Galsworthy

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