GPS 670
MEDIATE
CYPHER/CAT A
FM FCO ¢818 29Z
SECRET
SECRET
(HKR 10/1)
TO IMMDEDIATE HONG KONG TEL NO 949 OF 8 DECEMBER.
FOLLOWING FOR ROBERTS FROM HADDON CAVE
DEFENCE COSTS.
THE FOLLOWING ARE THE TWO DOCUMENTS REFERRED TO IN HONG KONG
GOVERNMENT OFFICE TEL NO 634:
1.
(A) LETTER OF 8 DEC FROM GOVERNOR TO MINISTER OF STATE DEFENCE.
BEGINS
1. OUR EXCHANGES OVER A PERIOD OF MONTHS HAVE NOW RESULTED IN THE TEXT OF A COMPLETE AGREEMENT. I HAVE RECOMMENDED TO THE EXECUTIVE COUNCIL THAT THIS TEXT IS SATISFACTORY IN ALL RESPECTS
AND SHOULD BE ACCEPTED.
.2. I WOULD HAVE LIKED TO BE ABLE TO RECOMMEND ALSO THAT BOTH.
COVERNMENTS PROCEEDED TO. AN IMMEDIATE ANNOUNCEMENT. UNFORTUNATELY
THIS IS NOT POSSIBLE. THE AGREEMENT WILL BE OF MAJOR PUBLIC INTEREST IN HONG KONG AND WILL CERTAINLY BE MOST UNPOPULAR AND STRETCH THE CREDIT OF THE GOVERNMENT PRETTY FAR. I AM NOT PREPARED TO PISK THE COINCIDENCE OF SUCH A SITUATION WITH THE IMPOSITION OFN
NEW IMPORT RESTRICTIONS IN HONG KONG ADDITIONAL TO THE SYSTEM OF RESTRAINTS ALREADY MUTUALLY AGREED. I THINK YOU WILL APPRECIATE THAT SUCH A COINCIDENCE WOULD PLACE THE HONG KONG GOVERNMENT, THE UNOFFICIALS ON WHOSE SUPPORT THE GOVERNMENT RELIES, AND MYSELF IN
AN IMPOSSIBLE POSITION.
3. I UNDERSTAND FROM THE SECRETARY OF STATE FOR TRADE THAT IN FACT HIS DEPARTMENT HAVE NO INTENTION OF IMPOSING SUCH RESTRICTIONS
OR OF SUPPORTING THEM, BUT HE IS UNABLE TO SPEAK FOR HIS COLLEACUES. I UNDERSTAND THAT YOU YOURSELF HAVE SINCE BEEN IN TOUCH WITH THE
PRIME MINISTER WHO FEELS THAT NO CATEGORICAL ASSURANCE CAN BE GIVEN
EXCEPT IN THE LIGHT OF DISCUSSION IN CABINET.
SECRET
14.
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