X

8. You also mention the money going into

Hong Kong via the Commonwealth Development

Corporation.

I understand that the Corpora-

tion has only one project at present in the

Some

Colony (the loan to, and small 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, there-

fore 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

comparatively 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 to the

we would be in their eyes be primarily

When

extent of 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.

do hope 11. In all the circumstances I treat that

you will find it possible on reconsideration

to agree to make the £400,000 available to

Hong Kong in the matter I have suggested.

D

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