considerations are involved, trade promotion is a
legitimate if subsidiary objective of our aid policy
and that aid provided with trade promotion as an
objective should come from the ODA rather than the
DTI. I understand that the DTI strongly support the
proposal to make a grant under the aid programme.
5. Your other main objection was that you could
only find money for Hong Kong at the expense of somebody
else. I am not sure however that we have explained
the proposal to you in sufficient detail.
Theposition
is that the Japanese are providing equipment for the
Our proposal is that we should offer
Polytechnic.
to provide equipment for four technical institutes which
have not yet been built. We want to encourage the
Hong Kong Government to go ahead with these technical
institutes which, as the DTI have said, will not only
provide enhanced opportunities for Hong Kong's youth
to acquire technical education, but also contribute
to Hong Kong's efforts to diversify her industry and
to achieve a higher level of technological sophistication.
These efforts are crucial if Hong Kong is to sustain
her rate of economic growth in the face of serious and
growing competition from, in particular, Taiwan, South
I need. Korea, and Singapore, in her overseas markets.
hardly add that if Hong Kong were to run into serious
difficulties we would have to find perhaps a considerable
sum of money to support the Colony.
6. What I am suggesting is that we should help Hong
Kong to help herself andin the process help ourselves.
The £400,000 would clearly not all be needed immediately.
With agreement in principle to provide the full sum
I should be very surprised if more than about
£100,000 would be required this year.
Could not
= 2
NOTHING TO BE WRITTEN IN THIS MARGIN