TNAG-0544-FCO40-639-Strength-of-garrison-in-Hong-Kong-1975 — Page 74

SECRET

Something to make the financial arrangements more palatable

to Hong Kong opinion and I agree with para. 2 of the Chief

Secretary's minute of 6 November emphasising the importance of

this aspect of the proposed arrangements.

duration.

I would like to see an agreement of the longest possible

There seems little point in committing ourselves at

this stage to a further, and probably difficult, negotiation in

five or seven years time.

These negotiations not only consume

I believe our

much time and effort but impose considerable strain on our

relations with Hong Kong; and the proposed inflator mechanism

adequately safeguards our financial position.

best interests would be served by an agreement with no stated

duration but including a provision to the effect that after

seven years either side has the option of seeking amendment to

I would be it on giving one year's notice of a wish to do so.

grateful for your views and those of our OPD colleagues on this

suggestion.

I am sending copies of this minute to OPD colleagues and

to Sir John Hunt.

18

November 1975

(JAMES CALLAGHAN)

SECRET