SECRETARY
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DUS (P)
AUS (GS)
SECRET
AUS (D Staff)
D of DP(C)
MINISTRY OF DEFENCE
486
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Head of DS1
MO 5/4
Head of DS6 SECCOS
Mr O'Keefe, FCO PS/Lord Goronwy-
Roberts, FCO
Dear Chinis,
Page 1 of 2 pages
16th December 1975
HONG KONG DEFENCE COSTS AGREEMENT
As you will know, an announcement of the new Hong Kong Defence Costs Agreement has been delayed, at the express request of the Governor of Hong Kong, until he is satisfied
that Hong Kong will not be affected by tomorrow's statement on import restrictions. It is vitally important that the
new Agreement should be announced as soon as possible if we are to benefit from the extremely advantageous terms negotiated, since the increased contributions from the Hong Kong Government are linked to the early release of Service land in the colony by the United Kingdom. This process must start on 1st January 1976.
At MES yesterday Ministers agreed that no action was to be taken against imports from Hong Kong for the time being. They did not, however, exclude the possibility of reconsidering the question at a later date. Mr Rodgers has conveyed this decision to the Governor of Hong Kong in the light of which the Governor has agreed to announcing the new Defence Costs Agreement at 11 am on Friday 19th December, provided nothing is said in tomorrow's debate on employment and measures for saving jobs which go any further than the decision at MES. He has stressed that any hint of early action against Hong Kong would make his position extremely difficult and could still jeopardise the Defence Costs Agreement even at this stage:
CW France Esq
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