D/MIN/WR/8/7
Dear Darick,
SECRET
MINISTER OF STATE FOR DEFENCE
WHITEHALL LONDON SW1A 2HB
TelephoneXXIOXXZX 01 218 7112
December 1975
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HONG KONG DEFENCE COSTS NEGOTIATIONS
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Defice syst.
In your letter of 8 December you said that Mr Rodgers would wish to avoid giving the Governor of Hong Kong any categorical assurances as to whether or not import restrictions might be imposed upon the Colony in the near future and you asked to be informed of the outcome of Mr Rodgers' meeting with the Governor yesterday afternoon.
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In the light of your advice, Mr Rodgers made it clear to the Governor that, although it still seemed unlikely that Hong Kong would be affected by import restrictions, he could give no firm assurances to this effect. In reply the Governor said, as we expected, that in these circumstances he could not agree to an announcement on the Defence Costs Agreement until the position on import restrictions was resolved. He stressed that he did not wish to use the Defence Costs Agreement, on which negotiations had now been completed, as a bargaining counter but he was genuinely concerned at the effect that two such announcements, if they were to be made so close together, would have on public opinion in Hong Kong and on the standing of his Government.
Mr Rodgers then asked the Governor for a letter setting out the reasons why he felt unable to announce the Agreement at this stage. This has now been received and it is enclosed
for information.
Mr Rodgers now sees no prospect of announcing the Agreement on Defence Costs until a firm decision is taken on the question of import controls. He has however asked me to
Patrick Wright Esq
Private Secretary to the Prime Minister
CEMPORDIR ET
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