SECRET UK EYES A

responsibility for the integrity of the colony, should be

prepared to pay the greater part of the defence costs and

remind us that Hong Kong is the only dependent territory

which we expect to contribute to its own defence.

13.

As regards the details of the agreement and the terms

of the Memorandum of Understanding which has been drafted

(Appendix B to Brief E), we know that Hong Kong are particularly

interested in the capital works programme, the release of land,

and the review clause.

SECRET

-4A-

UK EYES A

5

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