SECRET
Mr Male
F.
PS/1
(206
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(205) Corappa
(134)
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m
DEFENCE REVIEW:
1.
HONG KONG
In answer to Sir Douglas Henley's letter of 21 November, we cannot tell him whether the Secretary of State will be proposing to his colleagues a new form of words on Hong Kong. This is the subject of a separate minute from Lord Goronwy- Roberts to the Secretary of State.
2.
Nevertheless we should reply before the weekend, since the next Cabinet meeting is on 25 November. In particular we should deal with the Treasury contention that formal consultations with Hong Kong should begin as soon as possible after the Ministerial statement. In the Defence Review Sub-Committee
the Treasury had previously agreed that there would be no need for this from their point of view. The reasons for their present change of mind I that it would be more difficult to secure an increased defence contribution after the Hong Kong budget is not a question on which the Treauery are competent to advise. However, Hong Kong telegram no. 1029 (referred to in Sir Douglas Henley's letter) does imply that the Governor is prepared to start informal consultations with Executive Council before May 1975. He has expanded this in his latest telegram (no. 1148) to explain that he envisages, in effect, enlisting Executive Council in the public presentation of our proposals when the time is ripe. This implies that Executive Council would be consulted and informed on a confidential basis at a reasonably early stage.
3.
I accordingly submit a draft letter to Sir Douglas Henley, copied to Sir John Hunt and Sir Michael Cary.
22 November 1974
сс
Mr Thomson/Defence Dept Sir D Watson
PS/Lord Goronwy-Roberts PS
ACSE
A C Stuart
Hong Kong & Indian Ocean Dept.
lagree. Tsy are no particular
Put Make
urzards on
Hong Kong
SECRET
22/11/940
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