SECRET
UK EY ES A
A draft speech is at Brief B. Although the Minister's
statement may provoke questions and counter-statements,
it will be important not to let this opening session
develop into negotiations, lest entrenched positions are
taken up from which it is difficult for either side to
move.
16.
The next step will probably be one of clarification.
Although we have tried to clear up in advance as many
outstanding issues as possible, there may be points, e.g.
about reinforcement capability and the rival merits of
a frigate or patrol craft as the naval element of the
garrison, on which Hong Kong will seek further information.
These points canprobably be dealt with by officials; but
it may be necessary for the Minister to have informal
talks with leading Hong Kong representatives.
emphasising the UK's economic difficulties, it will be
important at this stage to give nothing away.
While
17. The Governor should fairly soon be able to form
some view on how far the Hong Kong Unofficials are prepared
to go to meet HMG. If the gap is small, officials of the
two sides might be asked to get together to see whether
the costs of the garrison can be massaged to reduce the
incidence in the early years. We might, for example,
offer to defer some of the proposed capital works: this
would be unwelcome to Hong Kong in that it would delay
making available land which they want and might therefore
induce them to increase their contributi on slightly.
There may also be a little flexibility on the costs of
refitting the frig.te or replacing the patrol craft.
18. but if, as is likely, the gap is large, the Minister
will probably have to have further talks with groups of
SECRET
UR EYES A
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