TNAG-0546-FCO40-641-Strength-of-garrison-in-Hong-Kong-1975 — Page 104

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This minute was followed by one from the Secretary of State for Flag F Trade to the Prime Minister, dated 10 December, saying, with regard MRK 6/590/to Hong Kong, that overt restrictions were out of the question and Mikk 20

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that on the strength of what the Governor had told him the week before, he saw no prospect of Hong Kong's accepting voluntary restrictions. In view of the minute by the Secretary of State for Industry and Trade, EID(E) in consultation with HKIOD, decided to recommend that a minute be sent to the Prime Minister putting Flag G the FCO position on record. I attach a copy of Mr Ennals's minute 461 of 12 December to the Prime Minister which makes the point that the

sooner wetcan tell the Governor that action against Hong Kong shirts is ruled out, the sooner we can announce the Hong Kong Defence Costs Agreement. The question of selective import controls, which was not, as originally envisaged, taken in Cabinet on 12 December, is due to be discussed at a meeting of Ministers this afternoon. EID, with our agreement, have briefed Mr Ennals to take the same

line as in his minute to the Prime Minister.

Flag # 4. Mr Andrew reported to Mr Rodgers on 10 December on the outcome

USYA)

Sy of his discussions with Mr Davies. Mr Rodgers's consideration of

the changes which the Executive Council wanted made to the Flag I Memorandum of Understanding is reflected in a telegram sent to colat. Hong Kong on 12 December. More important, Mr Rodgers, according

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to what Mr Andrew told Mr Janvrin on 11 December, was becoming "impatient' about announcing the Defence Costs Agreement and on

12 December signed a letter to the Governor proposing that "provided that there has by then been no statement which would place significant new restrictions on imports from Hong Kong", the Defence Costs Agreement should be announced on Friday, 19 December. (This had been the possible date suggested by Mr Davies to Mr Andrew

in a situation in which HMG made an announcement on import restrictions which did not include Hong Kong).

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/5. On seeing