TNAG-0546-FCO40-641-Strength-of-garrison-in-Hong-Kong-1975 — Page 94

SECRET

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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.

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My Secretary of State would therefore be most grateful

for an assurance that the Chancellor intends to make no

reference to Hong Kong in his speech tomorrow and that, if

pressed to say something during the course of the debate,

he will stick to the line agreed in MES that no action will

be taken against imports from Hong Kong for the time being.

He has asked me to underline the importance of this in view

of the delicate state of the negotiations over the new

Defence Costs Agreement and the crucial importance to us

of making an announcement before the House rises. Mr Rodgers

is due to meet the Governor, again on Thursday morning and a

final decision to proceed with the announcement on Friday

will be taken then.

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I am sending copies of this letter to the Private Secretaries

to the Prime Minister, the Foreign and Commonwealth Secretary,

the Secretary of State for Industry, the Secretary of State

for Trade and' Sir John Hunt.

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