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1.

I have seen your telegram 796 and am most grateful for your advice.

2. I must however make it plain that in view of pressures on the UK

Defence Budget, HMG attaches great importance to a substantially increased

poses contribution from Hong Kong. I appreciate the difficulty this proves for

you.

3.

I plan, subject to your views, to arrive in Hong Kong on Monday 6

October, by scheduled RAF flight. I would like to commence negotiations

the following day with some form of plenary session at which I can fully

explain HMG's position to the unofficial members of the Hong Kong Government

before we get down to the detailed discussions. I would hope that with

goodwill and understanding on both sides we could conclude negotiations

in time for me to leave the following Saturday, 10 October.

4.

I hope the above arrangements will suit; and I look forward to seeing

you again.

I should be

grateful if you

would

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know

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the detailed

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