Foreign and Commonwealth Office London SW1 A 2AH

@W Aston Esq

Senior British Trade Commissioner HONG KONG

Telephone 01-

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Your reference

Our reference

XEA 3/1 Hong Kong

Date

21 December 1973

HONG KONG ARTS FESTIVAL

1. I am sorry that it was not possible to send an earlier reply to your letter 13/4 of 9 November. We had to consult other interested departments and it took time to ascertain the British Council's firm intentions. As a result I can only pass on to you what I know you will regard as bad news.

2. Quite apart from a rather lukewarm reception received from other FCO departments we have been told by the British Council who subsidised the Orchestra last year that their funds are entirely allocated elsewhere this year and that they cannot provide funds for their share of the entertainment proposed by their representative. We understand that he is about to be informed accordingly.

3.

Because the Council cannot provide the support requested we could not justify taking this type of entertainment on to our own choulders, especially at a time when our entertainment funds have been stretched heyond the limit of our allocation. Although it is, clear that the Festival has been an outstanding success and we have at least participated in its inaugural year, I think you will agree that the event has rapidly assumed a cost and direction incompatible with the strict purpose of the funds we usually allocate to entertaining and, because we could not hope to support the affair indefinitely, it is probably as well that we end it now.

That said, we are not insensitive to the possible embarrassment that might result.but at this stage of planning for the event we would be willing to consider the matter again if the British Council change their minds and decide to give support for the proposed party.

LAST PAPER

DE H Hellings

Personnel Services Department

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