TNAG-0480-FCO40-545-Strength-of-garrison-in-Hong-Kong-1974 — Page 6

CONFIDENTIAL

AGENDA FOR MEETING ON 2 JANUARY 1975

A.

OBJECTIVES OF THE VISIT

General

1. Not to negotiate but to identify the issues on which negotiation will take place and, where appropriate, to identify options.

Costs

2.

the

To answer questions about/costing of the reduced garrison, already forwarded to Hong Kong.

3. To identify those areas in the costing which are still subject to revisionin (para 2 of cover note).

or desire

4. To isolate those areas in the_costing on which the Hong Kong government may have_reservations [eg transitional costings special treatment eg capital costs of new patrol craft7

Leg

5. To agree what account should be taken of the cost of capital works carried over from the period of the present Agreement (the size of this carry over will be increased by the current "slow down" on works) and of the value of defence lands released by o reorganisation into a smaller garrison.

Garrison

6. To establish any viable options as regards size/cost of the garrison and the implications of a hypothetical "£30 mn garrison".

7. To identify any components in the garrison on which the Hong Kong government may have reservations eg inclusion in the garrison of a UK infantry battalion instead of a cheaper 5th Gurkha battalion

Hong Kong'sAbility to Pay

8. To assess this.

Basis of New Agreement

9. To reach conclusions among ourselves on the issues on which negotiation should take place and to identify what options there are under the headings of size and cost of garrison, Hong Kong's own contribution to the cost and the UK's contribution.

Form of New Agreement

10. To identify those points on which agreement must be reached before a new Agreement can be concluded Leg (a) how the size of Hong Kong's ontribution should be determined for each year covered by the new Agreement bearing in mind that with the present costing figures are not yet firm; (b) how the size of Hong Kong's contribution should be presented publicly; (c) arrangements for providing for cost inflation: (a) arrangements for revision of the Agreement in the light of any major changes.7

B. CONDUCT OF THE DISCUSSIONS

For example, do we wish to set up sub-groups to deal with particular issues.

CONFIDENTIAL