7
CONFIDENTIAL
SECRETARY OF STATE'S VISIT TO HONG KONG: 26-29 SEPTEMBER 1980
BRIEF NO 5: DISCUSSIONS WITH THE GOVERNOR AND SENIOR OFFICIALS:
DEFENCE COSTS AGREEMENT
POINTS TO MAKE
HMG'S RESPONSIBILITY
1.
Reaffirm HMG's responsibility for the defence of Hong Kong
and for bearing a significant proportion of the costs.
NEW NEGOTIATIONS
2.
Understand discussions between Hong Kong Government and MOD
on a new Defence Costs Agreement have been hard but friendly.
Recognise difficulties in Hong Kong's increased contribution (more
than double).
CONSTRAINTS ON HMG
3.
Limits in which MOD are working. HMG are having to be ruthless
in their control of public spending; only reasonable that the
Hong Kong Government contribute its full share.
NEXT ROUND OF TALKS
4. Hope agreement can be concluded during Mr Hayhoe's visit in
October.
CONFIDENTIAL