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satisfactorily in time for the Defence Costs Agreement to be announced on 19 December and saying that, in view of the Executive Council's advice last week (my minute of 11 December to Mr Kerr),
he considers that he now has a free hand to conclude matters in the
light of whatever assurances he can obtain as regards import controls. The Governor's telegram, which has not yet been distributed, has crossed with Hong Kong telegram no. 1262. Paragraph 3 of this telegram, which sets out the Acting Governor's proviso regarding the announcement of the Defence Costs Agreement, seems to me to be in
line with the Governor's own views.
4.
The next step will be to bring the Governor up to date on the outcome of the MES Committee's consideration today of the question of import controls as they affect Hong Kong.
15 December 1975
CC
D.F. Million
D F Milton
Hong Kong & Indian Ocean Dept.
PS
PS/Mr Ennals
PS/PUS
Mr Male
Mr Arbuthnott, EID(E)
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