HKK 5/12
Reference
Mr Crowson
JTI love telgraffi
a
reply.
Las/x
28
FLAC
25
1. In his letter of 17 August attached, Mr Aston has written to Miss Lackey, DTI, at length on certain methods of assisting Hong Kong. Frankly the proposals are woolly. I have discussed the letter on several occasions with DTI. Miss Welch has sent us a copy of her minute of 11 September to Miss Lackey, with which I agree generally and which incorporates some of my comments. DTI are still considering the four proposals contained in the letter and no action can be taken by us until we hear further from the DTI. They will be answering the letter but hope to clear it with us beforehand.
2. However, it might be useful if I give some comments on the letter. The following is with reference to the paragraphs in Mr Aston's letter:
Paragraph 1 4
3. This recites the general desire of Hong Kong for aid. It has been accepted in Whitehall that Hong Kong should be given aid principally for political reasons but that there are also compelling economic and commercial grounds for doing so.
Paragraph 5
4. Proposal 1 - for aid for the Polytechnic library. We have received from the Hong Kong Government (Mr Haddon-Cave's letter of 17 August) a formal request for aid for this project amounting to £960,000. We have put in a strong request to ODA for grant aid for this purpose.
Paragraphs 6 11
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5. Proposal 2. This suggests British firms might equip a laboratory or provide some machinery for the Polytechnic. This, as Miss Welch acknowledges in her minute (see reference above), is a matter for the DTI. The difficulty over this is that British industry sees very little advantage in providing expensive equipment as a gift for this purpose. The return is too uncertain and too far in the future. They argue, with some justification, that if the use of British equipment in technical institutes leads to trainees later demanding British equipment then all the former Empire students now in positions of control in developing Commonwealth countries would be ordering British. They are not; they go for the cheapest and there is relatively little return to British industry. This argument can be countered but by and large industry is not interested in these altruistic schemes. In particular, equipment sent to the British Industrial Exhibition probably will either be on order or will most likely be unsuitable for training purposes. Mr Aston needs to be much more specific than he is in this letter.
/Paragraphs 12
DD 897152 154596 500M 2/72 GM 3643/2