TNAG-0545-FCO40-640-Strength-of-garrison-in-Hong-Kong-1975 — Page 80

HOFC 026/02

PP F C O

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CYPHER CAT/A

FM HONG KONG Ø209402

SECRET

NO DISTRIBUTION

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ORITY

Т+2 /на народ.

Lugha day 3/12

Pleau, topy and to the Savesial toprow

3 DEC 1975

thing.

M

HICK 10/1

2/

TO PRIORITY F C O TELEGRAM NO 1216 OF 2 DECEMBER.

FOR O'KEEFFE.

you

Just

PLEASE PASS FOLLOWING TO MACLEHOSE FROM ROBERTS. COPY TO HONG

KONG COMMISSIONER LONDON.

BEGINS

EXECUTIVE COUNCIL AND FINANCE COMMITTEE DISCUSSED THE DEFENCE COSTS AGREEMENT IN JOINT SESSION THIS MORNING. THE ADVICE GIVEN IN JOINT SESSION WAS SUBSEQUENTLY CONFIRMED BY EXECUTIVE COUNCIL.

2. DAVIES, WHO LEAVES FOR LONDON TONIGHT, WILL BRING WITH HIM FOR YOU A COPY OF THE EXECUTIVE COUNCIL MEMORANDUM AND A NOTE OF THE ADVICE TENDERED BY EXECUTIVE COUNCIL.

3. HE WILL ALSO BRING WITH HIM A COPY OF A NOTE OF THE DISCUSSION

OF THE JOINT SESSION.

4. IN GENERAL TERMS, UNOFFICIAL MEMBERS ENDORSED THE RECOMMENDATIONS OF THE JOINT WORKING PARTY FOR THE VACATION OF KAI TAK AND VICTORIA BARRACKS, ALTHOUGH THEY EXPRESSED THE STRONG VIEW THAT THE AREA OF FLAGSTAFF HOUSE SHOULD ALSO BE SURRENDERED.

5. AS YOU WILL SEE FROM THE NOTE, MEMBERS ADVISED THAT A NUMBER OF MATTERS SHOULD BE INSISTED UPON AS CONDITIONS FOR THE CONCLUSION OF AN AGREEMENT, BUT I HOPE THAT NONE OF THESE WILL PRESENT YOU WITH INSUPERABLE DIFFICULTIES.

6. MEMBERS EXPRESSED EXTREME ANXIETY AT THE DIFFICULTIES WHICH WOULD BE CAUSED BY THE ANNOUNCEMENT OF ANY RESTRICTIONS ON HONG

KONG'S EXPORTS TO THE UNITED KINGDOM,

7. MEMBERS INSISTED THAT THE FINAL DRAFT OF THE MEMORANDUM OF UNDERSTANDING SHOULD BE SUBMITTED TO THEM BEFORE ANY AGREEMENT IS CONCLUDED WITH H.M.G.

8. THEY HAVE ALSO ASKED THAT THEY SHOULD BE CONSULTED AS TO THE ACTUAL DATE ON WHICH ANY ANNOUNCEMENT OF THE DEFENCE COSTS AGREEMENT IS TO BE MADE AND HAVE QUESTIONED THE NEED FOR THIS TO BE DONE WITHIN THE NEXT TWO WEEKS OR SO.

9. THEIR INSTINCT SEEMS TO BE TO DELAY ANY ANNOUNCEMENT UNTIL THEY FEEL REASONABLY SURE THAT H.M.G. DOES NOT INTEND TO IMPOSE RESTRICTIONS ON IMPORTS FROM HONG KONG IN THE NEAR FUTURE. FURTHERMORE, THEY WISH TO AVOID ANY IMPRESSION BEING GIVEN THAT THE FINAL NEGOTIATIONS HAVE BEEN RUSHED AND THAT THEIR ROLE HAS BEEN A FORMAL ONE ONLY.

ENDS.

ROBERTS

ENOT PASSED BY C.O.D.

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