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current financial circumstances we shall aim to agree that Hong Kong should bear a higher proportion of the cost than they do now."

In answer to supplementary questions about the right size or proportion of the contribution, we would say that this is what the consultations will be about.

4. I am sending copies of this letter to Hudson and to Hall. I thought it would be helpful for all to be aware of the proposal before tomorrow's meeting, and I hope it will not cause difficulty.

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