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5. My idea is that the discussion with the Ministry of Transport sugested in the last paragraph of the draft would cover, not only the Admiralty and war office claims, but also the exact grounds for the difference between the two totals of the

i.e. what additional Ministry of Transport claim vessels does the larger total cover the question of whether the "Empire Sam" and "Empire Josephine" are or are not to be included, indeed all points on which we want clarification from Hong Kong before we begin negotiations and on which an exchange of views with the Ministry of Transport would be useful before we ask for such clarification. Mr. Fadford is ready to go over to the Ministry of Transport if and when required.

6. I pass through Mr. Palmer and also Mr. Ha,4," since Communications Department have now again taken over shipping matters.

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