TNAG-0518-FCO40-613-Constitutional-development-in-Hong-Kong-1975 — Page 12

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RECORD OF A MEETING BETWEEN THE FOREIGN AND COMMONWEALTH SECRETARY AND THE GOVERNOR OF HONG KONG HELD AT THE FOREIGN AND COMMONWERLMI CFFICE ON THURSDAY 4 DECEMBER AT 9.45 A.M.

Iresent

The Rt Hon James Callaghan MP Mr PL O'Keeffe CVO

Sir Murray MacLehose KONG KCVO

MBE

Nr T

cNally

Fir R N Dales

Visit to long Kong

1.

Welcoming the Governor, Mr Callaghan said he was looking forward to his visit to Hong Kong.

visit to Hong Kong. His last visit had involved a good deal of on-site inspection of development projects. He assumed that on this occasion the Governor would wish him to talk to various groups of people. Sir Hurray MacLehose confirmed that this was so. He also hoped that Mr Callaghan might make a speech during his visit. ir Callaghan agreed on the assumption that the draft would be prepared by the Hong Kong Government.

Defence Costs Agreement

2.

Mr Callaghan congratulated the Governor on the work that has been done to conclude a satisfactory defence agreement with Hong Kong. Sir Hurray MacLehose explained that in his view a continuing British financial contribution was politically most important. Mr Callaghan seid that HMG was still actively seeking further cuts in defence expenditure. He could make no promises about the long Kong garrison but would use his influence in favour of the conclusion of the present agreement.

3. Sir Murray HacLehose added that it would be difficult to sell the defence agreement to Hong Kong opinion if unilateral restrictions were placed on Hong Kong's textile imports into this country. He explained that Mr Shore was opposed to Mr Varley's suggestion of import restrictions on Hong Kong woven shirts and hoped that

Mr Callaghan would support Nr Shore when the matter came to be discussed by Hinisters. Mr O'Keeffe added that he had heard that Mr Mason was

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