CONFIDENTIAL

18. The Secretary of State will recall that when he was in

Hong Kong last February he accepted the Governor's view that the

Colony had a political need for outward and visible signs of a

special and beneficial relationship with the United Kingdom.

Carefully selected aid could supply this need. The Secretary of

State accordingly asked the Governor to submit specific proposals.

The Financial Secretary on his behalf has recently informally

suggested:

19.

(a) Nearly £1 million for building and equipping

the Polytechnic library.

(b) About £200,000 for a radar digital simulator for

training air traffic controllers.

We have told the ODA of these proposals and in particular

have asked for a substantial contribution for the Polytechnic to be

agreed in time for the Secretary of State to be able to mention the

fact during his visit. If we succeed, we shall supply an

appropriate supplement to this Brief.

Alternatively, it may be

possible for Mr Royle to make an announcement during his visit.

VISA REQUIREMENTS FOR HONG KONG PASSPORT HOLDERS

Germany

20.

We are committed at Ministerial level to approaching the

Germans to request a relaxation of their visa requirements for

British subjects from Hong Kong. However, the prospects of success

are poor because of the large and increasing numbers of illegal

immigrants from Hong Kong presently entering Belgium, Luxembourg and the Netherlands under our visa abolition agreements with those

countries, numbers of whom are filtering across to Germany.

7

CONFIDENTIAL

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