CONFIDENTIAL

C.

The undertaking in Hall's letter of 4 October 1967

was given five weeks after the Commonwealth Office

had received Hong Kong telegram 1320 of 29 August 1967.

This assurance was accepted by the MOD and it would

appear that the Commonwealth Office, if they were

prepared to assure the MOD that the costs would not

fall on Defence Votes, were explicity accepting that

they should be borne elsewhere.

RE-NUMBER remaining paragraphs.

DELETE paragraph 12 (now paragraph 13) and insert :-

"We really must reach a conclusion about these long outstanding

claims, which are beginning to attract the attention of the

E & AD, and since the FCO and we are unable to reach agreement,

we should be glad if you would adjudicate between us. We are

of course ready to discuss the matter with you if you think this

will help."

CONFIDENTIAL

L

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