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Government in the U.K. could be justified, unless the Hong
Kong Government had agreed with E.C.G.D. that, in consideration
of their giving a guarantee to the U.K. banks, the Hong Kong
Government would make good any sum that E. C. G. D. had to pay
in fulfilment of such a guarantee.
3. For one Government department to give another Government
department an assurance on the lines proposed in these papers
amounts to no more than an expression of intention on the part
of the British Government; and for the reasons that I have
stated in the previous paragraph, the implementation of such an
intention could not, in the circumstances, be justified.
4. It follows from what I have stated above that H.M.G. would
probably not accept responsibility for any claims against the
Hong Kong Government; and anyhow unless the Government of Hong
Kong 18 made a party to the proposal by giving some guarantee
to, or charge in favour of, E.C.G.D. there cannot really be any
question of the U.K. assets of the Hong Kong Government being
used to meet any claims by E. C.G.D. for reimbursement.
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