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Hack car 14..

WWW RES. RG. ST

2 1 JUN 1979

no 184.7

M

RECORD OF CONVERSATION BETWEEN THE MINISTER OF STATE FOR FOREIGN AND COMMONWEALTH AFFAIRS AND THE GOVERNOR OF HONG KONG AT THE FOREIGN AND COMMONWEALTH OFFICE ON 14 JUNE 1979 AT 12 NOON

Present:

Mr Peter Blaker MP

Mr RJT McLaren

Mr MR Morland

Mr G H Boyce

Mr C A Munro

Mr P J Williamson

1.

Sir Murray MacLehose GBE KCMG KCVO

Mr D C Bray CVO CMG

Mr D R Ford MVO OBE

UK/China Air Services negotiations

Mr Morland explained that the negotiations had identified two main

options. The British negotiating team and the Ambassador in Peking

strongly recommended the first option and the Secretary of State

for Trade supported it. We now needed to consider the FCO view,

and, in particular, whether the package was acceptable to Hong Kong.

The Governor said that he personally inclined towards the first

option but wished to take further advice. He would provide a con-

sidered view as soon as possible.

2.

Reinforcement

Mr Blaker said that Lord Carrington had spoken to the Defence

Secretary the previous evening but that the latter was still not

convinced that the Governor's case for the reinforcement of the

Hong Kong garrison justified the penalties, particularly in respect

of HMG's commitments to NATO. The Governor said that this was a

matter for Ministers. However, he wished to make it clear that the

Hong Kong Government would not have signed the Defence Costs Agree-

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