TNAG-0545-FCO40-640-Strength-of-garrison-in-Hong-Kong-1975 — Page 125

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SECRET

UK EYES A

ねん

388

32

HONG KONG:

1.

DEFENCE COSTS AGREEMENT

At a meeting called by Mr Andrew (AUS(GS)) at the Ministry of Defence on 20 November, a possible formula for defining the period of the next defence agreement with Hong Kong was discussed. Besides myself, Mr Hansford of the Treasury was also present.

2.

There was a good deal of sympathy for the view expressed in the Secretary of State's minute to the Prime Minister of 18 November that the agreement should be of indefinite duration; but it was thought that some refinement of the formula contained therein would be possible. On our formulation, there would have been a period of seven years in which no revision of the terms would be possible but there after revision could be suggested by either side at a year's notice. It was felt that it would be better to arrange an opportunity for revision of the terms at stated intervals which would give greater permanence to the arrangements. It was consequently agreed that the Defence Secretary should propose to his colleagues the following:

3.

"This agreement shall run for a period of seven years in

the first instance. It shall be renewed on the same terms for periods of five years thereafter unless either Government gives the other notice a year before the end of each such period that it wishes to vary the terms.'

This will, in effect, give either side the option of calling for revision of the terms after Year 6 instead of after Year 7; but this seems a small price to pay when no revision will thereafter be possible until Years 11, 16 etc.

24 November 1975

милк

PL O'Keeffe

Hong Kong & Indian Ocean Dept.

Mr Hell Din

"

RSD

[...

2 5 NOV 1975

HRILIO/I

1

CODE 18-77

SECRET - UK EYES A