TNAG-1752-FCO40-2472-Future-of-Hong-Kong-Parliamentary-debates-1988 — Page 88

ROBAFC

RESTRICTED

I . DEFENCE COSTS AGREEMENT

Negotiations taking place between British and Hong Kong

Governments about arrangements to apply after expiry of the current

Defence Costs Agreement on 31 March 1988. Both sides naturally keen

to bring negotiations to early and mutually satisfactory conclusion.

The negotiations are primarily the responsibility for my rt hon

Friend the Secretary of State for Defence. Honourable Members will

appreciate that it would be inappropriate for me to comment substance of negotiations.

Both

The fourth round of negotiations concluded on 29 February. sides tabled proposals aimed at reconciling outstanding issues, and

both sides negotiators' have reported the outcome to their respective authorities. No arrangements have yet been made to hold a further negotiating round.

No question of a walk out by the British side.