TNAG-0546-FCO40-641-Strength-of-garrison-in-Hong-Kong-1975 — Page 176

له الحمد أحمد الي .

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5. So far as Hong Kong are concerned, we have learned that the Executive Council yesterday approved the Home Office agreement and draft press announcement subject to some seemingly minor changes which Hong Kong Government Offices will be discussing with the MOD. The Council advised, however, that the Governor should not conclude the Defence Agreement until he is satisfied (i) that there will be a substantial interval between any announcement of such restrictions and any announcement of a new Defence Costs Agreement.

6. The Council also advised that the agreement should not be formally concluded until shortly before a public announcement is made of agreement having been reached, otherwise both governments might have to deny in public for some time the existence of an agreement which they knew had in truth been concluded in private. Executive Council members further experienced the opinion that the minimum interval between the announcement of the Defence Costs Agreement and any announcement of import restrictions should be two/three weeks. No strong views were expressed as to which announcement should come first. Therefore, if HMG were able to say that no import restrictions would be announced until the New Year, the agreement could be concluded and announced within the next few days. On the other hand, if there is any chance of import restrictions being imposed before the end of the year, the agreement should not be concluded or announced until we can be sure of a gap of at least two/three weeks between the two announcements.

7. The Governor, who left this afternoon for an engagement in Hong Kong and will be back in Scotland on Saturday, 13 December, has said that he wishes to discuss the Executive Council's views on the time of an announcement with Mr O'Keeffe next Monday, 15 December.

8.

EID (E) are considering whether to submit on Mr Varley's minute of 8 December referred to above.

10 December 1975

SECRET

D F Milton

Hong Kong and Indian Ocean Dept K 247

233 4381