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SECRET

physical protection of these troops who had been deployed to the border in order to stiffen the Hong Kong police.

4. The E & AD are taking an interest in this long-outstanding claim, and in view of this, if either the Hong Kong Government or the FCO (we do not mind which) will not meet it, we think it is necessary for all the facts to be put to the Treasury asking them to arbitrate. We should of course be quite content if you were to do this, giving us an opportunity of commenting on your letter, and before we received your letter of

14 February we understood that this was the action you were proposing to take. If you still feel unable to pay or to write yourselves to the Treasury, would you mind our writing as in the

4/5 attached draft?

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SECRET

sincerley,

Lenard Curzon

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