TNAG-0543-FCO40-638-Strength-of-garrison-in-Hong-Kong-1975 — Page 12

SECRET

UK EYES A

16. After this plenary session it is expected that

negotiations will continue behind the scenes. The

Governor will take soundings to discover how far the

Executive Council and Finance Committee are prepared to

go to meet HMG's demands. There may be a series of

meetings between the Minister and the Governor or between

the Minister and groups of Unofficial members of the

Council and Committee. There may also be meetings between

This has already been

UK officials and the Governor's official advisers.

17. If an agreement can be reached it will be embodied

in a Memorandum of Understanding.

drafted by officials of the two sides meeting in London

and is substantially complete except for the vital details

of the composition of the garrison and the size of Hong

Kong's financial contribution. It includes a provision

for inflation (see paragraph 3 of draft at Appendix B o

Brief E).

UK Negotiating Tactics

18.

Our negotiating tactics will have to be reviewed

when we get to Hong Kong in the light of discussions with

the Governor, CBF and Mr. O'Keeffe of the FCO, who we hope

will be able to give us an up-to-date assessment of the

Hong Kong position. But it is possible to suggest broad

lines which will have to be adopted in the negotiations,

which seem likely to fall into several distinct phases.

19. The first phase will be the Minister of State's

address to the Executive Council and Finance Committee,

which will provide the major opportunity to state HMG's

сазе. The main points to get across are our continued

commitment to the colony; our belief that Hong Kong,

which now enjoys an economic situation comparable to that

SECRET UK EYES A

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