10.

CONFIDENTIAL

dominant role in Hong Kong's affairs, Hong Kong will tend

to be immensely preoccupied with its own problems and

impatient and shrill about those of others. Much the most

difficult and potentially explosive of these issues will

be the Defence Costs Agreement.

I am sending a copy of this despatch to

H.M. Ambassador, Peking.

I have the honour to be,

Sir,

Your most obedient, humble servant,

Mr. Manha

GOVERNOR

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CONFIDENTIAL

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