TNAG-0546-FCO40-641-Strength-of-garrison-in-Hong-Kong-1975 — Page 118

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IMMEDIATE

SECRET

DARY 140038Z

CYPHER/CAT A

FM FCC 131653Z DEC

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DESKBY 140038 Z

Con

RECEIVED IN

REGISTRY No. 26

REGISTRY

15 DEC 1975

13/393/1 کرو)

TO IMMEDIATE HONG KONG TELNO 957 OF 13/12/75.

FOLLOWING FOR ACTING GOVERNOR FROM COVERNOR.

16C1975

KK/0/

101.

บาง

1. FOLLOWING IS TEXT OF MESSAGE RECEIVED BY ME FROM MINISTER OF

STATE, MINISTRY OF DEFENCE.

BEGINS.

58

1 THANK YOU FOR YOUR LETTER OF 8 DECEMBER WHICH HAS BEEN CIRCULATED

FOR INFORMATION TO THE PRIME MINISTER AND THE OTHER MINISTERS

CONCERNED.

IT IS CERTAINLY UNFORTUNATE THAT, WITH OUR NEGOTIATIONS CONCLUDED ON A BASIS SATISFACTORY TO BOTH SIDES, WE SHOULD BE UNAPLE TO ANNOUNCE THE AGREEMENT BECAUSE OF YOUR CONCERN ABOUT

THE FORTUITOUS COINCIDENCE OF THE POSSIBILITY OF IMPORT RESTRICTIONS,

I RECOGNISE, OF COURSE, THAT IF THE ANNOUNCEMENT OF THE DEFENCE

COSTS AGREEMENT WERE TO BE FOLLOWED CLOSELY BY THE IMPOSITION

OF SOME FORM OF IMPORT PESTRICTION, IT WOULD AGGRAVATE YOUR

PRESENTATIONAL DIFFICULTIES IN HONG KONG,

3. IN THE LIGHT OF THIS NEW PROBLEM I AGREE RELUCTANTLY ON

MONDAY THAT WE SHOULD NOT GO AHEAD WITH THE ANNOUNCEMENT OF THE

DEFENCE COSTS AGREEMENT QUOTE ON OR ABOUT 8 DECEMBER UNQUOTE

AS WE HAD AGREED. ON THE OTHER HAND, WE CANNOT WAIT INDEFINITELY,

FURTHER DELAY COULD ITSELF PUT AT RISK THE TERMS WHICH WE HAVE

AGREED. I WAS DISTURBED TO LEARN THAT, CONTRARY TO YOUR EXPECT- ATIONS, THE EXECUTIVE COUNCIL HAD ASKED FOR CHANGES IN THE MEMORANDUM OF UNDERSTANDING. PERHAPS MORE IMPORTANT, THE

RELEASE OF LAND AT KAI TAK AND VICTORIA BARRACKS, TO WHICH THE FINANCIAL PROVISIONS OF THE AGREEMENT ARE CLOSELY LINKED, WILL

NOT BE PRACTICABLE WITHIN THE TINSESCALE ENVISAGED UNLESS THE

DECISION TO GO AHEAD IS GIVEN BY 1 JANUARY 1976.

4. I AM SURE, THEREFORE, THAT WE MUST ANNOUNCE THE AGREEMENT

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/BEFORE