FW Glaves-Smith Esq

Department of Trade & Industry

1 Victoria Street

London SW1

Foreign and Commonwealth Office

London S.W.1

27 July 1972

43

(17)

Dear Glares, Smit,

AID FOR HONG KONG

1.

Many thanks for your letter of 20 July to David Scott. He has passed it on to me since although he has general responsibility for dependent territories Hong Kong is, as so often, the exception and falls to me. I was very glad to have this indication of your views; they are in general very much in line with my own.

2. The present position on possible aid to Hong Kong is that we expect the Governor to make specific proposals in the near future. These are likely to cover assistance for the Poly- technic and, possibly, navigational aids for the airport.

3. I was interested to see the specific proposals in your letter. Dick Crowson of our Hong Kong and Indian Ocean Department was in Hong Kong recently. The Director of Civil Aviation told him that bids for a feasibility study for the second airport had already been received and were being considered, but it was likely that the job would go to an American firm on the grounds that they had put in the best bid. The DCA said that, during a visit which he had made to Britain a little earlier on, he had tried to get the members of the Roskill Commission re-convened to undertake a survey for Hong Kong, but had been told by the aviation side of the DTI that this was not possible. The DCA also told Crowson that he was sorry to see contracts in connection with the airport not going to Britain and that he would welcome British aid and general helpful interest.

1. With your support in principle, we may yet be able to retrieve the situation. Mark Goodfellow, who deals with commercial and economic affairs in Hong Kong and Indian Ocean Department, will be going to Hong Kong in a week or so in connection with the proposed restraints on Hong Kong textiles exported to Britain, and will stay on for a few days for talks with other people in the Colony. He could take advantage of this visit to look further into the situation in conjunction

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