PA

کحال

nga wala I Juli N617

Cali bribi bine

VISIT OF LORD GLENARTHUR TO HONG KONG 29 JUNE 1 JULY 1988

خاشا

DEFENCE COSTS AGREEMENT

Points to make

(with OMELCO and the press)

HUKB 0271,

Very pleased that new agreement has been reached on

sharing of defence costs.

Broad outline has been made public.

Apportionment

of 65:35 in place of 75:25. Significant

improvement in terms for Hong Kong. Outcome of

long and tough negotiations:

believe it recognises

constraints on both sides, meets needs of both

sides.

Agreement still has to go to Finance Committee.

But as Chief Secretary has explained to you,

substantial savings for Hong Kong.

..../2

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