CIN D Hong Kong

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Resubmitted after discusses

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* 52083/+7 + 51037/47

I have passed the two drafts. When the letter has gone off to the Treasury, the file should be recirculated to Mr. Palmer who, I gather, is considering taking similar action to get a financial appreciation from the Malayan Union and Singapore. Perhaps Mr. Palmer would also consider whether

a similar request should not now be addressed to the Governors of Sarawak and North B orneo. The arafts might be prepared whilst we are waiting for Treasury reply regarding Hong Kong, but I suggest that, as a matter of tactics, they should not be referred to the Treasury until we have had the Treasury reply concerning Hong Kong.

2 Dlt. Desp. to H.K. for Isy, approval.

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11.4.47.

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4 D. R. Serfell (Ty) — 1.5.16/10/01

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