TNAG-0548-FCO40-643-Ministerial-briefs-for-meetings-with-Hong-Kong-press-1976 — Page 8

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went on with the Chinese on trade and other matters on a routine basis and new proposals matured from time to time.

11. Lord Goronwy-Roberts said bilateral trade was very much in Hong Kong's favour. Contrary to the general impression we commanded only 5% of the Hong Kong market. The agreement between Hong Kong and the EEC was good and credit was due to the Hong Kong negotiators. There was a temporary difficulty this year in that nearly 46% of the annual quota had been squeezed into a short period. There would be further negotiations in Brussels later this month. Hong Kong benefited from the GSP and took full advantage of GATT. All in all, taking into account the strong interests of West European countries, Hong Kong had done well. Textiles were after all a special preoccupation of EEC countries.

12. At the end of the meeting, which lasted about an hour, Mr Sinclair asked Lord Goronwy-Roberts whether he would like to make any general remarks. Lord Goronwy-Roberts said that from Hong Kong's point of view confidence in the Colony's future was vital. He would not like to see anything done which might impair the present state of confidence. He again praised the attitude of the PRC which he said was all important in connection with the maintenance of confidence in Hong Kong. He admired the way in which the Chinese, without any fuss or bother, followed a sensible, practical policy. HMG, and Hong Kong too, were grateful for this attitude.

13. It had been agreed at the outset that in writing up this off-the-record interview, Mr Sinclair would attribute what Lord Goronwy-Roberts told him to "senior government sources". Mr Sinclair said that he would send a clipping of his article to Lord Goronwy-Roberts.

Distribution

PS/Lord Goronwy-Roberts Mr Cortazzi

Mr Larmour

Mr Male o.r.

Mr O'Keeffe

Mr Martin, FED gr•

Mr Janvrin ·

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- 9DEC 1975

PS/Lord Gorghwy-Roberts

LORD GORONWY-ROBERTS'S INTERVIEW BY MR SINCLAIR OF THE SOUTH

CHINA MORNING POST

の

1. Mr Sinclair's interview, with Lord Goronwy-Roberts is now fixed for 3.00 p.m. on Wednesday 10 December. I will be present.

2. Mr Sinclair has indicated the subjects he intends to raise and I accordingly attach a Line to Take and defensive points on the following subjects:-

3.

(i) Hong Kong's Defence contribution

(ii) Hong Kong and Anglo/Chinese relations

(iii) The Death Penalty

(iv) Constitutional development

(v) Illegal immigration

(vi) Hong Kong textiles and the EEC

(vii) Hong Kong's sterling reserves

(viii) The Hong Kong economy and social programmes

(ix) Hong Kong's trading interests.

As background, I also attach a set of the briefs prepared for Lord Goronwy-Roberts's meeting with the Governor of Hong Kong on 2 December.

4.

MOD, the Bank of England, FED and EID (E) concur as appropriate.

9 December 1975

DF Milton

Hong Kong and Indian Ocean Dept

LORD GORONWY-ROBERTS'S MEETING WITH MR KEVIN SINCLAIR OF THE SOUTH CHINA MORNING POST - 10 DECEMBER 1975

BRIEF NO. 1

DEFENCE COST NEGOTIATIONS

Line to Take

1.

Following Mr Rodgers's visit to Hong Kong at the beginning of November, exchanges have been continuing between HMG and the Hong Kong Government on the new Defence Costs Agreement.

2.

During the Governor's recent visit to London he had further talks with Mr Rodgers at which officials on both sides were present. The Governor was supported by the Financial Secretary, the Secretary for Security and the Solicitor General from Hong Kong.

3.

Exchanges are continuing. As was announced in Hong Kong after Mr Rodgers's visit, it is hoped that the Agreement will be concluded and details made known before the end of the year.

Defensive Points

4.

The substance of the latest discussions

The substance of recent exchanges is confidential. after M. Roozes visit, subjects undur negotiation As was announced in Hong Kong recent exchanges have included, besides the basis for sharing the costs under the new Agreement, the release of further land at present occupied by the garrison, the method of calculating costs and the rates of exchange used, and the formula to be employed to reflect any inflation.

5.

Last minute problems in the negotiations

The time that these negotiations have taken reflects both the complexities of the issues involved and what Mr Rodgers has described as "tough negotiations with much plain speaking".