CONFIDENTIAL

2

should resist pressure within EC to impose a new round of actual

cut-backs on the Colony. (Present indications are that this would

in the last resort be acceptable to Hong Kong). DOT proposal for

discussion in OD(E), possibly on 30 March. But even if agreed better

not to say so explicitly since it might encourage pressure for better

treatment.

Hong Kong and General Department March 1981

CONFIDENTIAL

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