TNAG-0937-FCO40-1156-Visits-of-Sir-Murray-MacLehose--Governor-of-Hong-Kong--to-th-1980 — Page 221

Kong.

CONFIDENTIAL

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However, the Defence Planning Staff have been reluctant to

agree to this, since they do not believe that it would save a

significant amount of time, and it would complicate their procedure.

4. The MOD believe that a change in the composition of the

garrison on the scale now proposed will make it necessary to

renegotiate the 1975 Defence Costs Agreement (which would normally

run until 1983). They will wish to ensure that the proposed

reinforcement does not lead to any additional charges against the

Defence vote. Although the Hong Kong Government may not wish to

concede their full negotiating position immediately, it is likely

that they will be prepared, if necessary, to meet the full extra

cost. They will not, however, wish to see any reduction in the

present UK contribtuion, which is very important as tangible

evidence of the UK commitment to Hong Kong. There have been some

indications that the MOD may also wish to ask for a share of the

profits to be made out of the valuable land that they have been

giving up under the 1975 Agreement: such a proposal would undoubtedly

prove contentious.

Short-Term Reinforcement

5. The MOD have recently agreed to continue, at least until April,

the temporary reinforcement of the Hong Kong garrison that was agreed

last summer when the numbers of illegal immigrants first rose to

crisis proportions. They will examine ways of continuing the

reinforcement after April if the situation still makes it necessary.

They will shortly be putting to the Hong Kong Government proposals

about how the costs should be shared. Hong Kong believe that this

should be on the basis agreed last summer. As we understand the

CONFIDENTIAL

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