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2.

aspects of the problem we must leave it to you

to make such use as you think fit of the material

Following are our views on

points in paragraph 3 of your tel. No. 225:

available to you.

(A) This is true, but the argument still stands

svill

since £683 million

llion represents a very large burden

Mr A F THORPE,

FILAIR) 2 MÓD,

Mr RJ SMITH, DOE

LAMBETH BRIDGE HOUSE,C

MR P D NAIRNE, MOD MR R GEDLING,

TREASURY

MR E STRETTON, DOE LAMBETH BRIDGE

HOUSE

of overseas official debt and (cf. para 31 my No 235) excludes MR EH GWYNN, MOD long-term deft.

(B)(i) If you do not now wish to use argument

about growth in GNP we accept your advice.

In any event difficulty in providing reliable

figures for Hong Kong would tend to make

discussion on this point inconclusive.

(ii) If reference is made to Singapore you could

say that while the territory benefited from

the presence of the Commander in Chief, Far East,

and a major nexus of British defence facilities,

it has for many years maintained at its own

expense its own regular armed forces.

(iii) We agree that if reference to the Hong

Kong budget surplus will only lead to further

argument of the kind you mention the point should

be dropped.

(iv) Last sentence. This form of comparison

was based on statement included in your December

1966 broadcast.

(0)

Second sentence referred to was intended

to cover all aspects of financial and commercial

relations between Hong Kong and the UK. As to

civil aviation, we accept your advice.

We realise that there are strongly held

opinions on this subject.

If Unofficial Members

react as you expect we suggest you should do

(8430) Dd,033246 600m 9/66 G.W.B.Ltd. Gp.963

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/no more

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