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Government and him giving great privileges to China in return
for grant of certain concessions to Hong Kong.
It is presumably this Customs Agreement prepared by
Maze last year to which Kuo in announcement refere.
(5) It was China and not Hong Kong which refused to ratify -
this Agreement.
(6) Whole blame for breakdown of negotiations rests with
Chinese Government.
(7) If China does not like Agreement in its present form
Hong Kong Govemment is ready to reopen negotiations with a view to finding a solution more acceptable to both sides on
different lines.
(9) Threats are in any case to be deprecated as not being
calculated to facilitate negotiations of this kind or to lead
to friendly cooperation necessary for a settlement of this
question.
Have you any objection to this? Counter propaŭtanda
should be issued promptly. I therefore request vary early
reply.
Ends.