CONFIDENTIAL
present economic circumstances and planned social programmes
placed limits on the amount which could be provided for defence.
further consideration is being given to this question, as well as to
the possible release of further land occupied by the garrison but
owned by Hong Kong, and to methods of calculating costs, exchange
rates, and the handling of inflation in a new agreement.
It is
hoped that early resolution of these issues will permit a fuller
announcement to be made before the end of the year.
MINISTRY OF DEFENCE
November 1975
CONFIDENTIAL
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