SECRET

not do so.

We thought it politic to wait until

we had some idea of the size and composition of

the total bill likely to be presented by the

Ministry of Defence before we decided upon any

particular course of action. We shall not approach

the Treasury until we receive your reply to this

letter. I am afraid that we are not over sanguine

about our chances of success. You referred in your

defence letter to Hong Kong's substantial increased continu-

ing contribution but the likely Treasury reaction to

this argument is reflected in paragraph 2 of the

enclosed letter of 17 October from the Ministry of

Defence. However, we shall certainly do our best,

and meanwhile perhaps you would consider what

ammunition you can let us have to use

behalf when the time comes.

your

SECRET

CARTER.) (W.S. CALISA)

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