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taxation, which increases the problems of carrying out all the requirements of government both capital and recurrent.
7.
The emphasis upon Aid having a "moral" basis seems to be diminishing, and with it the insistence that political advantages should not be a major factor determining need. As the foregoing has, it is hoped, shown, Hong Kong qualifies for Aid under the third criterion of your minute
"Countries where it might be in our political or
commercial interest to provide Aid or more Aid;" Certainly if Singapore can qualify for, and receive, Aid, there be no case for a "Crown Colony" with a lower G.N.P. per capita than Singapore not qualifying. Impatience with an apparent U.K. unwillingness to support her boot Hong Kong's interests can only lead to business going elsewhere, as nearly happened with the recent Tunnel Contract. For political and commercial reasons Britain must show through Aid her confidence in the Colony's future. There lange public works projects in the puppeline now, all of which would bend it from capital and and for Technical Assistance in The next decade. Most of these projects will be for the benefit d) the Colony rather that, for the wider interests of Britain, as for example was the Kai-Tak
Masters, fast brey
extension.
ممله
are a
(I. R. Murray)
Hong Kong Department
(K 245)
8 August, 1969
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