J.
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Mr Wilford
Sir L Monson muatio
Mr Logan
AID PROGRAMME
CONFIDENTIAL
Mi lafiana
4141
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A.R.
Crglosa
19
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1. In his minute of 7 March to Mr Gordon, Mr Logan said
that Mr Royle has commented on Mr Wood's minute of 23 February
to the Secretary of State:
"How does this affect our interests in Hong Kong,
South-East Asia and South-West Pacific?"
In this submission, I consider only the Hong Kong aspects of
the question.
2. The problems which have arisen on the aid framework will
not of themselves affect the existing aid provisions as far
as Hong Kong is concerned. They will, however, be likely to
affect new proposals discussed by the Secretary of State on
his recent visit to Hong Kong, in particular Hong Kong's
request for navigational aids, and for assistance with the
Polytechnic. We are still awaiting detailed proposals from
Sir Murray MacLehose. When we have them, it may prove
necessary to seek special provision from the Treasury because
of the political and commercial importance of making such a
gesture. As you know, Hong Kong felt very aggrieved over
our decision on textiles; in addition, it is by no means
certain that we shall be able to persuade the DTI to agree
to the grant of traffic rights for SAS at Hong Kong.
CONFIDENTIAL
/As the