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to attempt to impose a higher figure on Hong Kong; the consequences of making such an attempt could well prove costly to us. We therefore recommend to Ministers that the Foreign and Commonwealth Office should
tell the Governor that £8.5 million subject to the conditions in paragraph 6 above would be accepted by Her Majesty's Government. We
shall report again to Ministers if the Governor is unable to obtain his Legislative Council's agreement to this.
February 4 1971
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