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than the traffic would bear at one time. Without an assurance that

import restrictions will not be imposed on Hong Kong, the wisest course is, as Sir Murray MacLehose suggests, to wait a while. If the Defence Costs Agreement is so valuable to us, it would be a pity to risk rejection by Hong Kong opinion because of bad timing.

4.

I consequently recommend that we should support

the Governor's view, as necessary, in inter-departmental discussions. We can make it plain that such disagreement as there is, is not over the substance of the agreement. Nor are we seeking to prejudice Cabinet discussions of import controls on Hong Kong (which, however, the Secretary of State, the Chancellor of the Exchequer, the Secretary of State for Defence and the Secretary of State for Trade will oppose). The only point is one of timing of an announcement of the Defence Costs Agreement where necessarily we have to take probable Hong Kong reactions into account.

9 December 1975

сс

PS/Lord Goronwy-Roberts

Sir D Watson

Mr Male

Mr Wilberforce

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Carrick, Hay Kery is

Вратний

PL O'Keeffe

Hong Kong & Indian Ocean Dept.

One poin needs clarificating.

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سمانا

In the paper How I have seen an import said, in that, thor what we do rein- ERC. de Acking по пайшуй

Governor implies on offendre vin. which in tight?

9/12

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