(885363) Dd. 896639 1,000M 8/71 St.S.

NOTHING TO BE WRITTEN IN THIS MARGIN

Registry No.

SECURITY CLASSIFICATION

Top Secret.

Secret.

Confidential.

Restricted.

Unclassified.

PRIVACY MARKING

..In Confidence

CONFIDENTIAL

DRAFT BRIEF

To:-

Type 1 +

From

Telephone No. & Ext.

Department

AID

1. Britain at present supplies hardly any aid to

Hong Kong. There are minor amounts for educational

assistance and the VSO programme. This is because the

ODA do not consider the Colony aid-worthy in view of

their large financial resources. They are, however,

committed in principle to providing £400,000 for tech-

nical institutes. Of this amount, £100,000 has been

ear-marked for the Morrison Hill Institute. At present

two further technical institutes are proposed, for each

of which £100,000 is ear-marked.

2.

dis

During the Secretary of State's visit to Hong Kong

an understanding was reached about aid. The Governor

he pointed out that, whilst Hong Kong might not have

an economic need for aid, it does have a political need

for outward and visible signs of a special and bene-

ficial relationship with the United Kingdom. Careful- ly-selected aid, even if of comparatively small amounts,

could meet this need. In view of the criteria for aid

normally applied, it seemed useful for proposals to be

made which involved a British interest, or which were

educational, or both. Two subjects which suggested themselves were accordingly navigational aids for Kaitak Airport; and equipment for the Polytechnic.

CONFIDENTIAL

/3.

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