subsist between a Colony and the responsible
power.
8. You also mention the money going into Hong
Kong via the Commonwealth Development Corporat
tion. I understand that the Corporation has
only one project at present in the Colony
(the loan to, and some shares in, the Building
and Loan Agency). There is also the possibility
that the Corporation may invest up to £2 million
in the container terminal project. But both
these projects are commercial enterprises and
not therefore in the same category as the
proposal to make a grant.
9. What I am seeking is a gesture which would
demonstrate to the Unofficial Members of the
Executive and Legislative Councils that we
do care about Hong Kong. I believe that
the psychological effect of the proposed grant
would be out of all proportion to the compara-
tively small sum involved.
10.
This leads me to my last point, namely
that if we ignore Tang's suggestion which was
made in the presence of the leaders of Hong
Kong business and industry, those leaders are
bound to take our refusal to follow up, the
suggestion as yet a further example of our
lack of interest in Hong Kong, even when we
would be in their eyes be primarily helping
ourselves in the process of helping the
Colony. This in turn would be bound to
colour local attitudes towards Britain and
might well create prejudice against the award
of contracts to British firms.
11.
In all the circumstances I do hope that
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