TNAG-0546-FCO40-641-Strength-of-garrison-in-Hong-Kong-1975 — Page 173

Mr Milton

Thankyn.

SECRET

Dufov.

Mr O'Keeffe (on return)

こ

Reference

457

らう

Tal 661 to the

IFK SO

DEFENCE COSTS AGREEMENT

Mr Davies and Mr Thornton had two meetings with Mr Andrew at the Ministry of Defence today. Mr Davies spoke to me after both sessions.

1.

2.

In the morning they concluded the Statement on Works Procedures, following exchanges of telegrams over the last few days on this subject.

3. In the afternoon they discussed the amendments to the MOU and the Joint Press Release proposed by the members of ExCo and reported in paragraphs 2D and 7 of the Hong Kong Government Office tel no 661. Mr Andrew said that he would have to refer these changes to Mr Rodgers.

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710 December

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They also discussed the problem of the timing of the announcement. Mr Davies reported that he told Mr Andrew that in his view there were three possibilities to consider:

5.

(a) HMG makes an announcement on import restrictions which does not include Hong Kong. Mr Davies thought there would be no objection to proceeding as convenient with an announcement of the Defence Agreement, although Hong Kong would like at least 48 hours' notice. Mr Andrew said that the MOD would prefer that an announcement was by means of an answer to an inspired PQ. Mr Davies said that he would prefer a press release at 11 a.m. in London which would allow a parallel announcement to be made in Hong Kong at 7 p.m. He added that Friday was the best day for Hong Kong and suggested that 19 December would be the most appropriate.

(b) HMG makes an announcement on import restrictions which include

Hong Kong. Mr Davies said that they would then have to consider the timing of the Defence Agreement announcement in the light of the circumstances prevailing in Hong Kong.

(c) HMG made no announcement on import restrictions. In this event Mr Andrew said that he would prefer an announcement before the recess although, apparently after obtaining advice from the MOD Public Relations Department that there would be little press interest in the UK, agreed that an announcement during the recess might be possible.

Mr Davies and Mr Thornton are returning to Hong Kong tomorrow, Thursday. If pressed to make a statement on return they will be saying that no agreement has been reached and exchanges are continuing.

CODE 18-77

11 December 1975

SECRET

R B Janvrin

Hong Kong and Indian Ocean Dept K 245

233 4777