Only one growth increment remains to be drawn under the existing Heads of Agreement which expires at the end of 1970 and, if not superseded by other arrangements, will then fall to be renegotiated.

6. I would emphasise that failure to meet

Hong Kong on a point so central to their conception of the nature of the September negotiations as part of the Heads of Agreement could endanger the entire agreement; and,

if the matter then went to higher authority,

would feel it right to re-flighist Hong Kong,

we for our part might feel unable to support

on this point

the rather weak ease you are arguing.

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