TNAG-0545-FCO40-640-Strength-of-garrison-in-Hong-Kong-1975 — Page 10

PRIME

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10 Downing Street Whitehall

8 December 1975

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Hong Kong Defence Costs Negotiations

The Prime Minister has seen your Minister's minute D/MIN/WR/8/7 of 5 December about Hong Kong defence costs negotiations, in which Mr. Rodgers asked for guidance on what he should say to the Governor of Hong Kong about import controls on Hong Kong goods.

As you know, this matter has not yet been decided finally by Ministers, although the Prime Minister thinks it unlikely that any import restrictions which may be decided will signficantly affect Hong Kong. Given some doubts however on the part of some Ministers whether we should at this stage totally rule out the possibility of restrictive action against Hong Kong, and in advance of any decision by Ministers, your Minister will no doubt wish to avoid giving the Governor any categorical assu- rance on this point. I should be grateful if, in the light of this, you could let me know whether your Minister still proposes to go ahead with the announcement of the Defence Costs Agreement on Tuesday.

I am copying this letter to Private Secretaries of other Members of O.P.D., of the Secretaries of State for Trade and Industry and to Chris Brearley (Cabinet Office).

P. R. H. WRIGHT

C. T. Sanders, Esq.,

Office of the Minister of State for Defence.

SECRET