TNAG-0446-FCO40-511-Discussions-with-Sir-Murray-MacLehose--Governor-of-Hong-Kong-1975 — Page 13

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CONFIDENTIAL,

ACTION POINTS: HONG KONG

1.

In preparing the next submission to DOPC on the Defence Review, the FCO would seek Treasury and MOD agreement to attach a note on Hong Kong's budgetary situation. The Governor would ensure that a suitable note would be given to the Treasury representative in the Defence Review talks in Hong Kong in January.

2.

The MOD/Treasury/FCO team would not be in a position to negotiate. It would be impossible for the team's conclusions to be submitted to UK Ministers in time for formal negotiations to begin before Hong Kong Unofficials became absorbed in the preparations for the Budget about the end of January. The aim should therefore still be a non-committal statement in the UK Defence White Paper in March, to be followed by substantive negotiations in May.

3.

The Governor would reconsider the arrangements for inviting MPs to visit Hong Kong at the Colony's expense. Mr Rodgers had suggested some names of Labour MPs who might be more use to Hong Kong than recent visitors. There might have to be some temporary slowing down in view of Hong Kong's budgetary difficulties. But in the longer term, the visits were useful in keeping Parliament in balance on Hong Kong.

4. In briefing Lord Goronwy-Roberts, the Department would make the point that he was bound to meet a lot of small-town criticism during his visit. This should not, however, be taken too seriously. Similarly the Minister should be recommended, at a suitable opportunity, to advise the Hong Kong press not to over-react to Parliamentary statements in the UK about Hong Kong.

Hong Kong & Indian Ocean Dept.

20 December 1974