(iv) Paragraph 6 of the draft represents a departure from our agreed inter-departmental approach to this problem. But the Governor told us before he returned to Hong Kong that if we could not let him have an agreed figure before the end of January, it would be extremely difficult, if not impossible, for him to complete his negotiations with his unofficial advisers, in time for the necessary provision to be included in the Hong Kong draft estimates for 1971/72. In this event, the alternatives would be the inclusion in the estimates of the same figure as for the current year or the inclusion of no figure at all for the defence contribution. In either case, whatever figure was ultimately agreed upon would then have to be made public, separately, at a later date, and this would only make even more controversial a subject which in any event is likely to cause trouble. In these circumstances we feel that we should give the Governor the opportunity of taking preliminary soundings of his unofficial advisers without further delay if he considers it advisable to do so.
3. For reasons which will be apparent, we should appreciate a very early reply to this letter. I am copying it with the enclosed draft telegram to Smith at the Department of the Environment and to Brack at the Treasury whose comments we would also like to receive as a matter of urgency.
(A.W. Gaminara)
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