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NOTHING TO BE WRITTEN IN THIS MARGIN

RegistrK K 10/9 No.

SECURITY CLASSIFICATION

Top Secret.

Secret.

Confidential. Restricted.

Unclassified.

PRIVACY MARKING

.In Confidence

E. 0. Laird

DRAFT

Type 1 +

From

To:-

H.E. Sir A. Galsworthy, KCMG,

Sir L. Monson

Telephone No. & Ext.

High Commissioner,

WELLINGTON

Department

64

P.c.

You will, I am sure, remember the talks we had

with Hong Kong in 1966 about the Defence Contribution.

We are now engaged in the preliminary exchanges 1 with David Trench about the size of the contribution

for the five financial years beginning 1971/72, and

a point came up during Mr. Royle's recent visit to

Hong Kong on which we would welcome your help.

The Unch

We were not negotiating a new contribution (we

wund

are hoping on this occasion to be able to reach agree-

with Tranch

he

ment) on a figure which Trench will subsequently be

able to persuade his Executive and Legislative

Councillors to accept) but were in fact discussing

Hong Kong's exclusion from the "ODM list" of aid-worthy

countries. During the discussion, one or two of the

Unofficial members said that when Mr. Fred Lee

negotiated the current defence contribution he gave an

undertaking (implicit we gather rather than explicit) :

that Hong Kong would be "compensated" as it were for

agreeing to a defence contribution by receiving

sympathetic consideration in the aid field.

could

suggested that we should check with you.

C.Y. Kwan It was

We have gone through the relevant papers here

but can find no reference to this. In the circum-

&

(and arpecuddly in view of C.Y. Kwan's reference to you)

ces/I thought I had better write to you to see if

stances/I

you had any recollection of such an undertaking.

Confidential

/I am

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