TNAG-0020-FCO40-56-Facilities-for-US-Forces-1967 — Page 77

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65/6/1

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CONFIDENTIAL

soon as convenient, as this will show the Chinese that we have no

difficulty in rejecting their charges outright.

6.

The figures show, however, that the Americans have been.

steadily increasing their naval visits to Hong Kong and these were

running in 1966 at a rate slightly above that envisaged in the guide-

lines agreed with the Americans to cover their use of Hong .ong. We

are watching this carefully. We propose to take it up separately

with Hong Kong and to consider whether any action needs to be taken

with the Americans at this stage.

7. Our reply to the first note of the 1st September, 1965 is also

attached for reference.

CONFIDENTIAL