TNAG-0368-FCO40-414-Visits-of-UK-Government-Ministers-to-Hong-Kong-1973 — Page 106

SECRETARY

OF STATE

CONFIDENTIAL

MO 25/2/19/1

MINISTRY OF DEFENCE

MAIN BUILDING, WHITEHALL, LONDON, S.W.I

TELEPHONE

01-930 7022

CONFIDENTIAL

18

ه

RECORD OF DISCUSSION BETWEEN THE DEFENCE SECRETARY AND THE GOVERNOR, COLONIAL SECRETARY AND SENIOR OFFICIALS OF THE

HONG KONG GOVERNMENT, SATURDAY 27TH JANUARY, 1973

In discussion, no serious points of difficulty emerged The following main points of interest were made:

a.

The Hong Kong Government was not putting pressure on the Services to give up land, although with land values at £100-200 per square foot, the Hong Kong Government were always anxious for early surrender of unneeded land.

b. The Services were very popular. Their eagerness to undertake MACC projects was a major contributory factor.

They

The

C. The Hong Kong Government saw no difficulties about sending units for training outside Hong Kong. would mind very much if the Garrison were reduced. Defence Secretary assured the Governor that HMG had no intention of reducing the Garrison, which he saw as particularly useful at the moment for giving Army units a respite from Northern Ireland.

d. There were no problems about the balance between British troops and Gurkhas. The Gurkhas were liked (and admired for their financial acumen).

g.

There was some discussion of Chinese policy towards Hong Kong. The Governor took the view that Chinese policy towards Hong Kong was unlikely to be seriously affected by the outcome of events in Vietnam. The point was made that Chinese commercial policy had recently become much more aggressive. The offtake of sterling through Hong Kong had risen from an average of £20-25m per month to £45m, partly no doubt because the Chinese now had more expertise in marketing their goods but probably mainly to pay for an increased scale of imports.

Secretary of State's Office

HONG KONG

27th January, 1973

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