}
Southach
abru
are now negotiating to increase the size of the defence
contribution still further. In 1969 we imposed a tariff on
textile imports from the Colony and further damage is
anticipated in the context of our application to join the
European Economic Community. In all these circumstances I
have been pressed to make available from the Aid Programme
grants of up to £400,000 over the next four years to pay for
British equipment in the projected technical institutes.
NP
. We cannot tell whether Hong Kong will be able to maintain
its remarkable record of economic growth; if there were to be
at some stage a serious recession in the Colony a new position
might arise. In the meanwhile it is I think agreed that there
Is no case for aid on financial grounds since Hong Kong has
already very large financial reserves which are still being
augmented In these circumstances the trade promotion case is
The ODA Dawn $ a difficult one for me I am of course prepared to take
British
account of legitimate commercial interests in working out the
aid programme to the many countries with which I am concerned
but I would not expect to institute an aid programme simply
on trade grounds in a case where development had reached a
level and was proceeding at a pace which did not justify the
transfer of resources, from Britain to another country. This
principle is as applicable to colonies as to other countries.
In such a case I would normally expect the Department of Trade
and Industry in concert with the British exporters concerned
Skriv to look after our export interest. British commerce i of
course in a strong position to promote its business in a
British administered colony.
ba
4. The political arguments which my colleague has adduced are
/naturally