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and the Chancellor has suggested to the Secretary of State for War that he should press for payment when he visits Hong Kong. The Colonial Office view has been that, because of the exacerbated state of public opinion in Hong Kong and the likelihood of pressure being exerted by Unofficial Members of the Legislative Council to divert the defence contribution to refugee resettlement, it is necessary for a decision to be reached about the additional units for the garrison before the Legislative Council in Hong Kong can be asked to agree to the payment without the risk of public controversy very damaging to our position in the Colony.

The Secretary of State may wish to impress on Sir Robert Black the desirability of doing anything which he can to make unofficials in Hong Kong more amenable on this subject of the payment of the 1957/58 contribution. Sir Robert Black has been told of the present position about the R. A. regiments up to the Secretary of State's reply to the Minister of Defence.

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