Q. Yes.
A. Pouliens 16 would be helpful if I could explain the
the negotiations have ronchod. As I think you and the Sub-Committes
appreciate they enc ut a very delicate stage. We do still hope to ourovace the terms of annement before the end of the reen, but if I give you a
frank account of how fer ve have got I en sure you will appreciate that it
must be confidential, and there must be no question of ary publicity for it in the report of this Sub-Committee until after the agreement is concluded
and announced. In a negotiating sitution it would be difficult for ne to
speak othomiso. Given that understanding I think it is best that I explain
to the Committee as fully as possible how far we have got in the areas wo
have been covering, because I am sure they would be of great interest to you.
Perhaps I could take you back to the Defence White Pepor, where we seid in
ponograph 34 that it was our intention to re-ngotiate the prosent cost
sharing agreement on the basis of a novhat reduned garrison, and that
was, in effect, confirmation of what had been seid by the fecretary of
State in the House on 3rd December last yoer. In practice this discursiva
at officic) level had bogum something over a year ago because the existing
defence costs agreement was coming to an end, and when I visited Kong Hong
myself in October, much discussion had already taken place, and in one
important respect decisions had almost been made. I had discussions d
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the Governor and the official members of his Executive Council in Kong Hong,
and I ret the unofficials as well, and I have had further discussions with
the Governor in London. Whose discussions in London took place on Friday
last, 5th Desertben, and yesterday. I reported to your Sub-Committee on
11th November the situation as it then was, and in particules indicated the
sort of garrison that we had 'greed upon. I n I reniioned that the total
cost of that germinan would be in the region of 42 million. In puošice *
and I may have mentioned this then, by the time I reached Tong kong the only
outstanding questions were, fixot, whathe? they would prefer to have a
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