expectation that a reply will be forthcoming and
it is suggested that the Secretary of State should
foreshadow what it is to be.
970.
It is considered that the likely consequences
in terms of deteriorating relations preclude
straight
altogether returning a straight refusal to contri-
(but improuig)
bute,relying on our difficult economic situation; a straight refusal would moreover undo much of the good that we hope will flow from the Secretary of State's visit. Alternatively, the Secretary of
State, while expressing regret that the present economic situation (although improving) precludes our making a contribution at the present time, coul
sayA
either
that arrangements will be made for the
locked at
abent
position to be reviewed in a year's time
Seeing whether it would then be possible to make with a view toja contribution being madeto
ing
help finance the later stages of the project (it is not due for completion before 1974). 5t would be necessary to add that, we would need to consider in particular the extent to which ←. (414) that Hann Konal, need for financial assist-
Hong
ance will be considered sympathetically if
essential
this and other major development projects
in prospect impose a strain on the Colony's
resources.
The first is clearly preferable;
but the second
probably reflects a more realistic view of the
circumstances in which aid for Hong Kong would
!
#tract the necessary general support. Nothing-
Twould
NOTHING TO BE Written IN THIS MARGIN