TNAG-0445-FCO40-510-Discussions-with-Sir-Murray-MacLehose--Governor-of-Hong-Kong-1974 — Page 29

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RECORD OF CONVERSATION BETWEEN THE FOREIGN AND COMMONWEALTH

SECRETARY AND THE GOVERNOR OF HONG KONG HELD AT THE HOUSE OF

COMMONS ON MONDAY 24 JUNE 1974 AT 3.30 P.M.

Present

The Rt. Hon. James Callaghan MP

Lord Goronwy-Roberts

Sir Murray MacLehose

Sir Duncan Watson

Mr M Wilford

Mr A Acland

Mr AC Stuart

Mr A Galsworthy

1.

- 1 JULI974

NKK 3/548/12 5418/13

Mr Callachan said he would like to put formally on record his congratulations to the Governor for his work in Hong Kong.

Defence Review

2.

Sir Murray MacLehose said that a garrison must be retained in Hong Kong for internal security purposes; but any proposal that Hong Kong should pay more would strain their finances, already heavily committed on new social expenditure. An agreement that they should continue to pay about the present £8 million a year might be negotiable, even though, with a reduced garrison, this might form a greater proportion of the total cost. But the troops should be the cheapest possible. This meant keeping the Gurkhas, who cost only a quarter as much per head as British soldiers. At the same time some UK forces would have to be retained in order to keep the British character of the garrison.

3.

Mr Callaghan said he took note, particularly about the need for the Gurkhas. But Hong Kong would have to pay a greater proportion of the overall costs. He was not ruling out a continuation of the Hong Kong garrison, but the UK faced a decline in its standard of living and there could be no increase in public expenditure.

SECRET

/Hong Kong and the EC