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BORD GULONY-ROBERTS
MÆTING JIRA PEL GOVERNOR OF HONG KONG:
2 DECEBER 1975
BRIEF NO. 3
DIFANCE COSES
Line to Take
1.
The Governor will probably not wish to discuss the procent stage of the defence costs negotiations in detail in view of his meeting with Mr Rodgers on 4 December.
2.
However, the Minister might like to say that the 300 have strongly supported the Governor's view that the new agreement should be of the longest possible duration and that the Defence Secretary is likely to put forward a formula satisfactory to both sides.
We
hope that this will contribute to a satisfactory resolution of the other outstanding points.
Background
3.
Hr Rodgers's visit to Hong Kong resulted in a Heads of Agreement (attached) initialled on 1 November.
4.
A number of outstanding points remained to be resolved
after Mr Rodgers's visit. These included:
(a)
a plan for the return of MUD lands, particularly RAF Kai Tak and Victoria Barracks, to the Hong Kong Government;
(3) the duration of the agreement;
(c)
(a)
an inflator mechanism to take account of the differing
levels of inflation in Hong Kong and the United Kingdom;
an examination of possible further administrative economies in the support coats of the garrison; (e) various details concerning the Memorandum of
Understanding, the statements of financial procedures and the working principles for the works programs.
BECHET
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