IMMEDIATE
CYPHER/CATA
GR 110A
FROM F C O 1817552
RE!
DEDIP.
SECRET.
145
SECRET
TOP COPY
LAET
143
HELT
BEF.
146
PIA
1.
DESKBY 190001Z.
TO IMMEDIATE HONG KONG TELEGRAM NUMBER 895 OF 18 OCTOBER. 1974
PERSONAL FROM WATSON.
YOUR TELNO. 1037: DEFENCE REVIEW.
21/10
MOD AGREE THAT IT COULD BE USEFUL TO DISCUSS BASIS
OF CALCULATION OF THE POUNDS-STERLING 31M. FORCE. HOWEVER,
THIS DOES STILL CONTAIN SOME UNCERTAINTIES. WE THEREFORE
SUGGEST THAT, AS A FIRST STEP, DAVIES SHOULD COME TO LONDON
FOR DISCUSSIONS EARLY NEXT WEEK BEFORE HIS RETURN TO HONG KONG.
IN THE LIGHT OF THOSE DISCUSSIONS WE COULD DECIDE WITH YOU
WHETHER FURTHER TALKS SHOULD BE HELD IN HONG KONG OR HERE.
2. WE HAVE CONTACTED DAVIES WHO WAS PROPOSING TO RETURN
ON TUESDAY BUT WILL PUT THIS OFF IF YOU WISH. HE HAS
ASKED IF WE WILL LET HIM KNOW DEFINITELY BEFORE MIDDAY
MONDAY OUR TIME. GRATEFUL FOR YOUR DECISION BEFORE THEN.
CALLAGHAN.
FILES:
HEAD HKIOD
HEAD DEFENCE DEPT FS
FS/FUS
SIK D. WATSON
MR. THOMSON
MR. MALE
Fil. wILFORD
COPIES TO:
MR. HOCKADAY, MOD
CDR PEROWNE, D OF DP(C), MOD MR. SMITH, CABINET OFFICE
SECRET
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