TNAG-0311-FCO40-347-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 24

Mr. Laird

Reference

186.

1.

In order to bring yourself up-to-date you will wish to see 173, 175, 176, 177, 178, 181 and 182.

2. I attach the draft of a Memorandum which has been agreed with the Ministry of Defence, the Treasury and the Department of the Environment. This Memorandum sets out for the record the terms and the conditions of the defence contribution as recently agreed to by the Hong Kong Government and HMG.

I suggest that we should now send the draft to Hong Kong under cover of a letter to the Acting Governor (see draft also attached) asking him for confirmation that Hong Kong agree with the terms of the Memorandum.

3.

I have a suspicion that Hong Kong will try and question the interpretation of certain of the terms, notably paragraph 3 (v) of the Memorandum. This suspicion is based on the enclosure to Mr Smith's letter to me at 183.

4. However, I do not think we should allow ourselves to be drawn into argument over any details at this stage. The important thing is to get the broad terms of the Agreement reached, settled and recorded in one document. If Hong Kong wishes to wriggle then no doubt they will say so in their reply.

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2 November 1971

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A W Gaminara Hong Kong Department

DD 896639 140609 500M 7/71 GM 3643/2