CONFIDENTIAL
reservoirs to help meet the growing needs for water: and possibly
a mass transit system (details at Annex A).
4.
Moreover Hong Kong's economy is very largely dependent on
its trade with the outside world. It is accordingly particularly
vulnerable to outside influences, whether from political scares
or from a closing up of markets; and the indications are that Hong
Kong will find it difficult in future to maintain the rate of
growth it has achieved in recent years.
5. In view of the buoyant state of the Hong Kong economy (and
the unhealthy state earlier of the UK balance of payments) it has
been difficult for HMG to help Hong Kong financially with its
development problems. The calls for financial assistance from HMG
are such that they can only be met on a system of priorities based
on need. However, the Unofficial Members of the Executive Council
have been informed (during the negotiations over the defence
contribution) that it must not be thought that HMG would not be
prepared to consider assisting Hong Kong in some appropriate way
if an urgent need for such assistance were to arise at some future
time and a specific case put forward.
6.
Meanwhile the Overseas Development Administration (ODA) are
very ready to place at Hong Kong's disposal the advice and
recommendations of their technical advisers who visit the Colony
from time to time. The ODA also finance a small scheme for the
training of students in Britain (about £32,000 a year); and they
are actively engaged in recruiting technical personnel for employ-
ment by the Hong Kong Government.
17.
2
CONFIDENTIAL