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I recovered these papers after I had sent them on, since
I had received the Secretary of State for Trade and Industry's minute of 15 February. I have spoken again to Mr. King.
2. He remains of the view that his Department must consult industry on this but confirms that, as the draft says, whatever the response of industry, Hong Kong will get £400,000 from here for these Institutes if they wish to take up the offer.
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3. My own view is that this position meets our political point unless the Governor comes back to advise strongly to the opposite. Our position may not be welcome to the Hong Kong Government since Sir John Cowperthwaite has been insisting that Hong Kong industry make their contribution to these Institutes and our position (though we are not going so far as to make an industrial contribution a condition of our grant) is analogous enough to his.
4. If Mr. Royle is not satisfied I doubt if we can pursue `this further at the official level and it will be necessary for him to speak to Mr. Kershaw who is in charge of 0.D.A. in Mr. Wood's
absence.
how/mom
16 February 1971
(L. Monson)