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The
projects for which they are already earmarked.
same situation would apply in the case of the Foreign
and Commonwealth Office votes, if it were considered
that on political grounds a contribution from that
source could be justified. The Aid Programme alone
appears to offer the necessary flexibility. The
Ministry of Overseas Development are not, however,
prepared to provide capital aid to Hong Kong in the
Colony's present economic circumstances. They can
see no justification for doing so at the expense of
other more needy countries in view of the buoyant state
of the Colony's economy and finances. In their view,
any expenditure for the benefit of British civil
aviation should be met from the appropriate spending
head (i.e. the Board of Trade vote), which is not the
Aid Programme. I understand that no suitable source
of non-government funds could be found.
3. I must admit that, against the background of our
own serious (but improving) economic situation and the
contrasting buoyancy and high rate of expansion of
Hong Kong's economy, the Colony has not got a strong
case for assistance on general economic and financial
grounds. Nevertheless it does need to tackle/ over
tackle
the years ahead a formidable programme of development
in social and other services (the urgency of which has
been neightened by the events of 1967) which will tax
its resources to the full. And it foresees the need
to spread some of the burden of providing the
resourus
I
necessary financial bod
Load for which purpose the airport
project is ideally suited since it is anticipated that
airport revenues could service a loan on reasonable
(ans
and in this (H.K.gart) [H.K. gust)
they have being encouraged
by HMG)
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/terms