TNAG-0940-FCO40-1159-Visits-by-Foreign-and-Commonwealth-Ministers-and-officials-t-1980 — Page 132

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It was noted this would require deferral of the normal UrbCo elections due in March 1981.

4. Mr Clift asked to be kept informed on each step of drafting.

GARRISON

5. Secretary for Security outlined the position on Defence Costs Agreement and requested Mr Clift's assistance in persuading the MOD to be more specific in their allegations regarding an underestimation of costs before the Hong Kong team left for London. The aim should be for the team to come back with a draft of the revised DCA.

6. S for S noted that there was likely to be a significant weakening of the garrison during the critical "swimming season" with the departure of the paratroopers at the end of April, together with two Companies of the 10th Gurkhas. This situation would continue until two new Gurkha Companies emerged from training in August. It was agreed that HKG should give notice to London of its intention to review the position in March.

REFUGEES

7. Mr Rossborough, UNHCR, had pointed out that the United Kingdom off-take in January and February was lower than in December. Mr Clift agreed to take this up with the Home Office.

LEASES

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Mr Clift asked whether any assistance was required in the Governor's present dialogue with Mr Cradock, or whether there were any visits imminent for which a line needed to be agreed. The Governor stated that apart from the Financial Secretary's visit to China there was only one visit in the near future. This was by the Chinese Foreign Minister, Huang Hua, who would transit Hong Kong 19/20 March. It was agreed that all that was needed was a follow-up of Mrs Thatcher's remarks reminding the Chinese that the problem existed, was not urgent, but it had to be faced eventually. If Huang raised the question of representation he might be asked whether this was linked in his mind with the lease problem. The risk that he would infer a coupling of the issues

by HMG was worth the price if a package subsequently emerged. It was agreed that the 1979 initiative had been a worthwhile risk, but no new one should be made until the successor regime was firmly established.

9. In the meantime it was agreed that Mr Clift should

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