1

DRAFT SUBMISSION TO THE SECRETARY OF STATE

FOR CLEARANCE WITH THE FCO

AID TO HONG KONG

Since late October 1970 there has been correspondence between

the FCO and the Overseas Development Administration about

possible grants to Hong Kong for the purchase of British

equipment for their technical institutes. Unfortunately we

have not reached agreement and are therefore obliged to

submit the question to you for a decision.

2.

in

In the past we have given considerable help both to the

University of Hong Kong and to the Chinese University there,

particularly for the extension of their technical faculties,

and we still have about £400,000 worth of old commitments

which we intend to fulfil. But we discontinued any capital

aid programme for the Colony several years ago because the

growth of the Hong Kong economy and the rise in the income per

head (now believed to exceed US$700) have put Hong Kong well

above the level which qualifies for aid on the criteria which

we use. The same incidentally is the case in Bermuda and

the Bahamas which are the other two relatively prosperous remaining Dependencies. but hose

*

diferent

3. When Mr Royle was visiting Hong Kong last autumn he

discussed with Mr Tang, the Chairman of the Polytechnic Planning

Council and a member of the Governor's Executive Council, a

number of matters in the context of the future of technical

training in the Colony. In particular

/ Mr Tang

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