ROBAFC
RESTRICTED
I . DEFENCE COSTS AGREEMENT
Negotiations taking place between British and Hong Kong
Governments about arrangements to apply after expiry of the current
Defence Costs Agreement on 31 March 1988. Both sides naturally keen
to bring negotiations to early and mutually satisfactory conclusion.
The negotiations are primarily the responsibility for my rt hon
Friend the Secretary of State for Defence. Honourable Members will
appreciate that it would be inappropriate for me to comment substance of negotiations.
Both
The fourth round of negotiations concluded on 29 February. sides tabled proposals aimed at reconciling outstanding issues, and
both sides negotiators' have reported the outcome to their respective authorities. No arrangements have yet been made to hold a further negotiating round.
No question of a walk out by the British side.