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despite the communication's reference to instructions from London, the matter fell within the competence of the Hong Kong Government. They said that we would need to refer the matter to you before making our reply.
2.
It seems clear that the Russians, having failed to make any progress locally, have decided to try a different line of approach. I think we already have most of the material for a negative reply. But it would be helpful to have your up-to-date comments and suggestions on how our reply should go.
3.
The statement's third paragraph refers to the 1968 Merchant Navigation Treaty. As you know (see our telegram no. 094 of 24 January) this does not apply to Hong Kong.
Yours ever, Adaw
A C Stuart
Hong Kong & Indian Ocean Dept.
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