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(5)
ARIOD (68
Foreign and Commonwealth Office
London SW1A 2AH
18. 2.75
Defence Review: Hong Kong
PA
3/3
You wrote to me on 11 February enclosing a paper on
Hong Kong. There is clearly still a wide gap to be bridged
and I agree that we must accept the Governor's judgment
that it would not be in the interests of either side to
seek to resolve the matter before May.
My officials are in regular touch with the Governor
about the prospects for the negotiations, and Goronwy-Roberts'
recent visit to Hong Kong provided an opportunity to discuss
the Hong Kong budgetary situation on the spot. The Governor
is well aware of H.M.G.'s position, and I do not think any
purpose would be served by further high level messages at
this stage.
Such messages might well be useful a little
later, perhaps when formal negotiations with the Executive
Council are proceeding.
We must meanwhile do all we can, in advance of the
formal negotiations, to make it easier to resolve the
problem. I therefore support the contingency work proposed
in the paper and, particularly, the proposal for an early
study of the possibilities of a £35 million garrison.
/ I am sending
The Rt. Hon. Roy Mason, M.P.
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