TNAG-0545-FCO40-640-Strength-of-garrison-in-Hong-Kong-1975 — Page 20

CONFIDENTIAL

TOP COPY

GR 650

IMMEDIATE

CYPHER/CAT A

FM HONG KONG 060615Z

CONFIDENTIAL

TO IMMEDIATE F C O TELNO 1239 OF 6 DECEMBER.

FOR O'KEEFFE.

7, 51

8 DEC1975

171441N

436

442)

PLEASE PASS FOLLOWING TO HADDON-CAVE FROM ROBERTS. COPY TO

HONG KONG COMMISSIONER LONDON,

/ [941?]

DEFENCE COSTS. YOUR TELNO 628 OF 5TH DECEMBER.

1. THE TEXT OF THE MOU WILL BE PUT TO EXECUTIVE COUNCIL FOR APPROVAL

ON TUESDAY 9TH DECEMBER. AS ALL POINTS MADE BY UNOFFICIAL MEMBERS ON 2ND DECEMBER HAVE BEEN MET I EXPECT MEMBERS WILL FIND THE TERMS

OF THE MOU ITSELF ACCEPTABLE BUT SEE PARA 12.

2. I WOULD WELCOME CLARIFICATION OF THE EFFECT OF PARAGRAPH 2 OF

THE MOU. KAI TAK DOES NOT HAVE TO BE RELEASED UNTIL 31ST MARCH 1978. HOWEVER, THE HONG KONG GOVERNMENT WILL BE PAYING AT THE RATE OF 62 AND A HALF PERCENT AS FROM THE BEGINNING OF APRIL 1977.

3.. IF KAI TAK IS NOT RELEASED UNTIL (SAY) JUNE 1978, PRESUME

THAT THIS MEANS THAT THE HONG KONG GOVERNMENT CONTRIBUTION OF

62 AND A HALF PERCENT WILL ONLY RUN FROM JUNE 1978 AND THAT THERE

WILL BE A REFUND TO HONG KONG OF THE DIFFERENCE BETWEEN 50 PERCENT

AND 62 AND A HALF PERCENT FOR THE PERIOD 1ST APRIL 1977 TO JUNE

1978.

4. PLEASE CONFIRM THAT IT IS INTENDED THAT THE MOU SHOULD BE

PUBLISHED IN FULL. WE SEE NO OBJECTION TO THIS, THE PREVIOUS

AGREEMENT WAS PUBLISHED,

INTIAL

CONFIDENTIAL

15. PRESS