SECRET AND PERSONAL UK-A
Tho'
Keeffe
Sir Duncan Watson
Duncan
HONG KONG: DEFENCE COSTS AGREEMENT
1. I attach a formal submission on this subject together with two draft telegrams informing the Governor of the results of the OPD meeting of 22 July on this subject.
2. I should add that there are differing interpretations in Whitehall departments of what OPD actually decided (The Treasury naturally wish to keep open the possibility of reducing the garrison still further if UMELCO prove intractable). The telegrams are thus a careful compromise designed to represent the position as neutrally as possible. In addition, Mr Rodgers is not happy about the tactics suggested by OPD and want to renew the charge when he returns from leave in mid-August. The result is that the two draft telegrams are scarcely likely to be very informative from the Governor's point of view, in particular on the point of what is to happen next. I therefore recommend that I should write a personal letter along the lines of the attached draft setting out the position more fully. The object is primarily to make the point to which we attach most importance, ie the need to avoid coming under pressure to reduce the size of the garrison below what the Chiefs of Staff think is the minimum credible commitment to Hong Kong. I had an opportunity to show the draft to CBF Hong Kong, who called unexpectedly yesterday. He has been fully briefed in the MOD and will wish to discuss the whole question with the Governor on his return to Hong Kong next week.
3. I would be grateful, therefore, for your approval to send the attached personal letter to the Governor. I shall, of course, send a private telegram asking the Governor not to reply to the two main telegrams until he has seen my letter.
31 July 1975
cc: Mr Wilford
Wuth
PL O'Keeffe
Hong Kong & Indian Ocean Dept
SECRET AND PERSONAL UK-A
Wespoke.
Letter
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as amended.
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1/8
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