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4. IF YOU ARE PREPARED TO EXPLORE THIS COUNTER OFFER, I AM OBLIGED TO RESERVE MY POSITION ON. THE PROPOSED INCREASES IN. '77/78 AND '78/79 UNTIL THE WORKING PARTY HAS REPORTED.
5. UNOFFICIALS WERE FURTHER OF THE VIEW THAT IF THROUGH NO FAULT OF THE HONG KONG GOVERNMENT VACANT POSSESSION WAS NOT FORTHCOMING WITHIN THE TIME SCALE EVENTUALLY AGREED THERE SHOULD BE A
CORRESPONDING POSTPONEMENT IN THE INCREASE IN HONG KONG'S
CONTRIBUTION.
6. IF YOU ARE ABLE TO AGREE TO SETTING UP A WORKING PARTY TO PRODUCE A REPORT ON THE SHORTEST POSSIBLE TIME FOR GIVING VACANT POSSESSION OF THESE TWO BITS OF LAND, IN THE HOPE OF REACHING AGREEMENT ON THE LINES PROPOSED, UNOFFICIALS WERE INSISTENT THAT MEANWHILE NO SUGGESTION OF AN AGREEMENT BEING IN SIGHT SHOULD BE MADE PUBLIC. THEY STRESSED THAT FROM THE POINT OF VIEW OF PRESENTATION IN HONG KONG IT WOULD BE FATAL, AS WELL AS IN THE CIRCUMSTANCES INACCURATE, TO SUGGEST IN ANY WAY THAT AGREEMENT HAD BEEN REACHED, EVEN IN PRINCIPLE.
MACLEHOSE
FILES
HKIOD
DEF. D
SWPD PS
(3)
PSI LORD GORONWY-ROBERTS SIR.D. WATSON
MR THOMSON
MR MALE
COPIES TO
MR WARD, D$6
MOD
MR HANSFORD, TREASURY
MR BRYERS, CABINET OFFICE
MR AGGLETON, PSAI DOE
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