Mr. B. H. C. Sykes,

Planning Staff

HWB 9/14

13

Selection of Projects for Possible Additional Expenditure' Overseas in the Non-Military Field

Last year the Governor of Hong Kong put forward a proposal that Britain and Hong Kong should co-operate in setting up in Hong Kong an advanced- level technical institute for the training of students from Hong Kong and surrounding countries in S.E. Asia. The suggestion was that Colombo Plan i funds might be used to provide the whole or greater part of the capital cost; Hong Kong would under- take the recurrent expenditure; and a certain proportion of the places would be reserved each year for students from the Colombo, Plan countries. The Governor's idea in putting forward this project. was that it would demonstrate Britain's willingness to assist Hong Kong (at the height of its

confrontation" with the communists) while at the same time benefiting us in our Colombo Plan connexions as well. This project fell through because it was our conclusion that Colombo Plan funds could not be used for capital projects outside the Plan's member countries.

2.

Meanwhile the Hong Kong Government had under consideration another project a polytechnic, offering advanced level education in technology and commerce. The outline project has been forwarded to the Commonwealth Office in the hope that some assistance might be forthcoming. In consultation with the Hong Kong University Grants Committee (which prepared the outline plan) it is being given preliminary consideration in the Commonwealth Office and the Ministry of Overseas Development. We hope to arrange a meeting next week between the University Grants Committee and education advisers in the 0.D.M. The estimated capital cost is stated at £1.9 million. The project could no doubt be made into a joint venture offering places to students from other countries on the lines of the Governor's original proposal in paragraph 1.

3. This idea would have considerable merit in relation to the objectives stated in your circular of 14 August. A well-equipped and well-run polytechnic, operating at an advanced level on British methods and British equipment could help to accustom young engineers, etc., of other countries to using British equipment, designs and methods, could help to spread knowledge of and respect for British technological achievements and thus have a direct bearing on trade promotion. It would be a project situated in British territory.

4. As I have indicated, the project has been presented to us in outline only. Without further consultation with Hong Kong and discussion here there is not sufficient detail available to complete the form attached to your circular as Annex C.

/ If you

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