there is a strict ceiling on overseas aid expenditure
and so long as the needs of so many territories are
as great as they are it is only possible to give aid
to one at the indirect expense of another.
I am
afraid that in these circumstances it is very diffi-
cult to draw any other conclusion than that Hong Kong
is at the bottom of a long list for the purpose of
overseas development expenditure.
Indeed from your
insistence, for example, that your application for a
loan for the extension of Kai Tak Airport facilities
should not be interpreted as a request for aid I am
certain that you appreciate this point very well
yourselves.
3. But the difficulty of drawing any hard and fast
lines in this matter is immediately brought home by
the fact already known to you that we do not despair
of getting ODM to contribute something at least to-
wards your need for financial facilities for Kai Tak.
I think that Bunny Carter has already told you this
and that you may be at work on preparing the case for
the developmental value to Hong Kong of airport
improvements which will certainly be necessary if ODM
are to be persuaded to contribute at all. Even so I
will not pretend that it will be easy to convince the
Ministry and we may well not succeed. For the pur-
pose of interpreting the circular in the light of
Hong Kong's present exceptionally strong financial
position it had better be said that your Treasury
cannot expect normally to benefit from aid funds.
4. One more matter needs to be explained in the
light of this Despatch. As Bunny Carter has also
indicated to you we are not attempting to process
your request for Colonial Development and Welfare
assistance with the expansion of the aeronatutical
2