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Mr. Rees-Williams.

This draft proposes comments on the nearest approach we have yet had to a general development programme from Hong Kong. I have delayed it for some days because there were discussions on other files about the general Hong Kong financial situation which might have affected it. Those discussions have, however, now been taken. to a point at which they need no longer concern us in this particular matter.

I send this to you in view of the question of general policy involved with regard to the use of Hong Kong's allotment of C.D. & W. funds. In principle, it might have been desirable to get the views of the Colonial Economic and Development Council on the suggested programme, but as this is nothing like a complete development plan, and as Hong Kong are very anxious to make progress with the particular projects put forward here, I think we can dispense with such reference to the Council. submit, therefore, for approval of the draft despatch as it stands.

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