TNAG-0540-FCO40-635-Strength-of-garrison-in-Hong-Kong-1975 — Page 5

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RECORD OF, CONVERSATION BETWEEN THE FOREIGN AND COMMONWEALTH SECRETARY AND THE GOVERNOR OF HONG KONG HELD AT THE FOREIGN AND COMMONWEALTH OFFICE ON FRIDAY 11 APRIL 1975 AT 11.30 A.M.

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Present

The Rt. Hon. James Callaghan MP HE Sir Murray MacLehose KOMG MBE Mr P L O'Keeffe OVO

Mr T McNally

Mr R N Dales

DEFENCE COSTS

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Mr Callaghan said that pressure had developed for further cuts in defence over and above those announced in the Defence Review. He appreciated that the 'Colony also had budgetary problems but that he must advise the Governor that Hong Kong would need to find more money to cover the costs of the garrison or else go short.

Sir Murray MacLehose said that he had discussel the possibility of further reductions in the size of the garrison with the Minister of State for Defence, Mr Rodgers. He was hopeful that a solution to the problem would be found.

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Mr Callaghan said that the decision on force levels obviously depended to a large extent on the future attitudes of the Chinese. Sir Murray MacLehose observed that the Chinese were being conspicuously helpful at present.

Hong Kong & Indian Ocean Department

16 April 1975

Distribution

PS

PS/Mr Ennals

PS/Lord Goronwy-Roberts

Sir D Watson

Mr Wilford

Mr Male

Mr McNally

FED

Defence Dept.

OLA

Legal Advisers

G&GD

co (Personal).

HE Sir Murray Marhahne Rethi R

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