CONFIDENTIAL
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· 5MAY 1972
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MR SCOTT
HONG KONG AND ODA
Two points:
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(a) You said the other day that ODA were doubtful about the application to Hong Kong of any scheme for a home- based service for the dependent territories because Hong Kong did not qualify for aid and the cost would have to be met
why? 11 out of the aid programme.
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1.
I do not know whether your attention has been drawn to the S of S's discussions in Hong Kong last February when he told the Unofficial Members of Executive and Legislative Council that "our rules (under which Hong Kong did not qualify for aid) were perhaps too rigid" see para 11 of Extract attached at A;
This is not of course a conclusive argument for the inclusion of Hong Kong in the scheme but with the other arguments you are deploying is sufficient ground to reserve the Sof S's position.
(b) By the same token I notice in a minute by Mr M G Smith on "Programme Analysis and Review (PAR) of the Relationships between aid and commercial benefits" that in the course of the review "a member of established policies and practices may come in question". In the light of the
S of S's remarks in Hong Kong, the policy as regards aid to the Colony might.well come under that head. There is however a risk that Hong Kong will fall between two stools and be ignored by the ODA as not coming within its joint D.T. Departments and overlooked by "the other wing of the FCO" which is associated with ODA and DTI in the PAR Committee set up in ODA to do the analysis and review of policy. Since you have the closest entree to the ODA, I would be grateful if you could consider how best we could ensure that this aspect is not overlooked.
A detailed case for Hong Kong under the PAR exercise would of course have to be worked out in the first instance by Hong Kong Department. It would have to show that aid to Hong Kong would provide good prospects for our exports and investments and political interests and therefore inevitably
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