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On (ii) could we notę:-

(a) Besides adverting to the contribution as a proportion of estimated revenue, reiterate once again the concern felt here that Hong Kong should not pay a smaller percentage of the garrison's costs than in the previous agreement.

(b) Deploy now the kind of argument set out in paragraph 5 of my letter of 9 March 1971 to Laird which, I believe, has never been put across fully to the Governor.

c) Suggest that some running might be made out of recent gestures towards Hong Kong on transitional relief in the changeover from cotton textile quotas to tariffs and on granting landing rights to KLM.

The various instructions which were sent to the Governor between February and May were, of course, packed with all sorts of arguments. Can we be certain that he will draw on these as appropriate in doing his utmost to obtaining the agreement of the Executive Council for the proposals, or should we make some cross reference to the particularly relevant telegrams?

LO

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I am copying this letter to Thorp.

Jous sucars

Tere Brack

TJ BRACK

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