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Reference...

HKK 5/13

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Mr. P. A. Wilde (Financial Policy and Aid Department)

3

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Management of Aid:

Information for

Dependent Territories and Associated

States.

Thank you for the copy of your Minute MF 23/3

on this subject addressed to Mr. Carter.

2.

I see that your draft circular saving despatch is addressed to Hong Kong, and I wonder if you have seen my letter of the 3 January to Miss Durbin about the parallel draft circular which it is proposed to send to the dependent territories about the future of CD and W.

3. I think on the whole that our advice would once again be that this despatch should not be addressed direct to Hong Kong, but copied only together with a suitable letter of explanation. Indeed Hong Kong is even less likely to be immediately interested in a circular dealing as this does very largely with financial aid, than she would be in the subject of CD and W funds. Although ODM might hesitate to say so categorically, if asked I fancy that they would give a very clear indication that there was no chance at all of Hong Kong, with her finances as healthy as they are at present, benefiting from allocations of capital aid, although technical assistance will no doubt continue within limits to be available to her. The emphasis of the circular being on the fuller justification now required as part of ODM management policy of applications for aid, I think you will agree that it is more than ever appropriate that Hong Kong should be addressed as though she were equally affected with the other territories concerned.

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4. Finally, there is the point that although Hong Kong draws up what are called forecasts of "Government Expenditure", she does not prepare development programmes, as a matter of policy. You will see that I refer indirectly to the same point in my letter to Miss Durbin.

9 January 1969

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(H. H. Stewart) Hong Kong Department

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