TNAG-0544-FCO40-639-Strength-of-garrison-in-Hong-Kong-1975 — Page 96

PERSONALAND CONDMEIDENTIAL

7. As for the outcome of the negotiations, we did better

than I expected. A fifty-fifty settlement began to assume a symbolic significance and I was afraid that we would be unable to agree on a Hong Kong Contribution of 75% earlier than the fifth year of a five-year agreement. I believe that by moving to 75% in the third year, the Governor has gone as far as his continuing credibility with his Unofficials, and with Hong Kong opinion, allows. When,

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late in the day, I conceded under strong pressure from the

More char Jely Governor that we should conceal for the time being the cost- accumeleta tul-Sharing formula, it was as much because I recognised the

and more

seri time to

help prepare public opinion

need for him to save face as out of a wish for a substantive, even although limited, outcome.

8.

This is not to say that the remaining questions relating

to the release of land and to the length of the agreement

are not important to him. We would be foolish to think that a leisurely move from Kai Tak and Victoria Barracks would suffice. We would be guilty of bad faith (and could cause unnecessary trouble for ourselves) if we were seen to be dragging our feet. I am quite satisfied, having discussed both sites with General Bramall on the spot, that we can meet

the Hong Kong Government on these. And if the timetable were to slip a little, the responsibility must be the Hong Kong Government's, not ours.

9.

In

Perhaps I should add, in case the Treasury are disposed to quibble, that the land properly reverts to the Hong Kong Government and that we have no claim on it whatever. addition, as the Hong Kong Government is paying (outside the new Agreement) for the reprovisioning of our facilities we should be rather better housed (thus avoiding capital and maintenance costs) than would otherwise have been the case.

10. On the length of the agreement, I see much merit in settling for seven years.

It would be seen in Hong Kong

as a gesture of goodwill and an earnest of our continuing commitment. It would postpone a wrangle that involves

much valuable time and effort; and on the next occasion the

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PERSONAL AND CONFIDENTIAL