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the fifth paragraph, we felt that tris was simply a different way of putting the same thing. Despite this, we find our original version a little more elegant. The form suggested by the State Department requires an actual alteration to the text of the 1964 Agreement; once this is done, there will also have to be added a new sentence or paragraph defining "private operator" for the purposes of the Agreement. This,
in itself, is alamay. Furthermore, it would be very difficult, in drurting an insertion for the 1964 Agreement, to refer to a paragraph in a different Exchange of Notes, au it is neesauary ke úo.
$. Rayond this, we have made various alterations to tho draft Hote. We do not wish, at this stage, that the modifi- cations to the Agreement should apply generally, und wo have therefore amended the draft so as to confine the modifications to the Agreement as it will apply in respect of Hong Kong.
6. You will also notice that we have excluded paragraph 16 of Annox ↑ from the releaus in the fourth paragraphi thio is a provision that we suculd not in any cireumatanced wian to waive, and is not, of course, suitable for being taken over by F.A.3.7. He bave also inserted a phrase in the fifth paragraph in order to exclude the reference to a private operator in Annex 2 where this would be inapplicable.
7+ Aa 1 mentioned over the telephone, these drafts have beon cleared in the Foreign Office and Commonwealth Office at dosk level only, and are therefore subject to any commenta that may be made at a higher level or by our Treaty Formalitics Section. Nevertheless, we do not expect that there will be any further difficulties.
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(2. D. Berman)
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