COMM PRIV
OUNCIL FOR
TRADE
HKD
for advice please [it may not be
c.c. Si Leslie Kusm
PS/M /Royle
ни
necessary
SECRETARY OF STATE FOR FOREIGN AND COMMONWEALTH AFFAIRS
for Sof S to see thi
1 ut€5/ 22
AID TO HONG KONG
Richard Wood copied to me his minute to you of 5 February
about the proposal to offer Hong Kong financial aid up to a
total of £400,000 spread over the next four years for the
purchase of British equipment for their four proposed
technical institutes.
2. I very much hope you will agree that we should accept
this proposal if the money can be found without prejudice to
our other aid commitments.
3. I see no prospect of a contribution of this order from
industry in present circumstances. Even if it could be
organised it would take some time and it would not have the
same impact in countering the Japanese Government's clear
indication that they are going all out to establish for their
exporters a strong political and commercial position in Hong
Kong. I do not think we should be deterred from using some of
our aid in a case where developmental considerations are
secondary to political and commercial objectives provided we
are not doing so at the expense of other more deserving
recipients. I understand we judge all aid applications on
merits. The special considerations need not therefore
establish an aid precedent for Hong Kong.
4.
The proposal needs to be viewed against the background of
a somewhat complex economic and market situation. In the
public sector despite its status the Hong Kong Government leans
/over