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Mr Tang drew to his attention the proposals shortly to be
put to the Hong Kong Government for the establishment in the
next few years of four intermediate technical institutes.
Mr Royle has stressed how important these institutes will be
in providing enhanced opportunites for the rising generation
and the contribution they will make to Hong Kong's effort to
diversify her industry and improve her technology; these
hen efforts will be crucial if Hong Kong is to sustain the rate of industrial
eeenomic growth in the face of growing competition.
4. Mr Royle was informed of the Japanese Government's promise
to supply free of charge technical equipment to the value of
US$1,200,000 over the re xt three years to the Hong Kong
Polytechnic. It is not clear whether this offer or any
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further offer will be extended to the proposed technical
Amant
institutes, but the Senior British Trade Commissioner in the
tutep.
Colony has said that if Britain does not assist,the equipment
is likely to be donated by the Japanese and possibly also by the
that
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German Government, so the new generation of Hong Kong engineers
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will not be familiar with British equipment, al than be fou
5. Mr Royle is also concerned about difficulties which have
arisen in recent years in relations with Hong Kong. There
have been complaints in the post-war years that the Colony has
been left to grapple alone with tremendous problems posed by
the influx of refugees from China; that the British Government
has been a party to a number of decisions adverse to the
Colony's trading and financial interests, in particular the
restriction on Hong Kong cotton textile exports to Britain
since 1959, the import surcharge 1964, the increase in the
defence contribution in the same year and again in 1966;
and
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