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ZIAÌ37 011101 RECALLED MESSAGE 305C0397 (VZA)
VV DZAPARDA ÁO
00 RBDWC
DE RBMYAD 006 3050350 ZNY SSSSS
O 0103492 NOV
FM TPS HONG KONG
TO MODUK
BT
SECRET
HH
DIG ZZZ RTT (ZZZ INS.BY DCC, NOT TO BE USED IN REPLY)
FOR SECRETARY OF STATE FROM MINISTER OF STATE PD COPY TO APS MINISTER OF STATE
HONG KONG DEFENCE COSTS NEGOTIATIONS
ONE PD THANK YOU FOR YOUR TELEGRAM 302130Z PD THE ELEVENTH HOUR DEMANDS OF THE UNOFFICIALS REPORTED IN THE GOVERNORS TELEGRAMS 1086 CMM 1089 AND 1990 TO FCO MADE THE TASK OF SECURING AN EARLY AGREEMENT MUCH MORE DIFFICULT PO BUT I HAVE NOW REACHED AGREEMENT WITH THE GOVERNOR ON A BASIS WHICH I BELIEVE TO BE ACCEPTABLE AND WITHIN MY DELEGATED AUTHORITY CMM ON THE UNDERSTANDING THAT IT IS TO REMAIN CONFIDENTIAL FOR THE TIME BEING PD THE TEXT OF THE HEADS OF AGREEMENT WHICH WE SHALL BE INITIALLING TODAY IS IN MY IMMEDIATELY FOLLOWING TELEGRAM
TWO PD THE HEADS OF AGREEMENT GIVE US MOST OF WHAT WE WANTED IN TERMS OF THE MINIMUM GARRISON AND A FINANCIAL CONTRIBUTION FROM
PAGE 2 RBMYAD 006 SECRET
HONG KONG RISING TO 75 PER CENT PD REFERENCE IS MADE TO PROVISION FOR INFLATION AND FLUCTUATIONS IN EXCHANGE RATES AND (IN THE ANNEX) TO A FURTHER EXAMINATION OF POSSIBLE ECONOMIES IN SUPPORT COSTS CMM ALTHOUGH I DO NOT THINK WE CAN LOOK FOR ANY DRAMATIC SAVINGS HERE
THREE PD THE MAIN PROBLEM HAS BEEN THE LAST-MINUTE INSISTANCE BY THE UNOFFICIALS ON THE EARLY RELEASE OF KAI TAK (ADJACENT TO THE CIVIL AIRPORT) AND VICTORIA BARRACKS (IN THE CENTRE OF HONG KONG) AS THE PRICE OF AGREEING TO AN INCREASED HONG KONG CONTRIBUTION (PARA 1 OF GOVERNORS TELEGRAM 1090) PD I VISITED THE TWO SITES YESTERDAY AND HAVE DISCUSSED THE MATTER AT LENGTH WITH CBF PD ON MILITARY GROUNDS THERE IS NO OBJECTION TO VACATING VICTORIA BARRACKS AND POSSIBLY SOME ADVANTAGE IF THE FACILITIES CAN BE MORE CONVENIENTLY RE-PROVIDED ELSEWHERE CMM PROBABLY AT HMS TAMAR PD THE SURRENDER OF KAI TAK CMM ON THE OTHER HAND CMM PRESENTS SOME DIFFICULTIES FOR THE RAF AND POSSIBLY SOME RISKS CMM BOTH IN TERMS OF INTERNAL SECURITY AND EXTERNAL REINFORCEMENT PQ BUT I BELIEVE THAT IN THE INTERESTS OF SECURING AN AGREEMENT WHICH WILL SAFEGUARD OUR MINIMUM FORCE LEVEL THESE DRAWBACKS ARE ACCEPTABLE PD CBF AGREES
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