C
position does not warrant such assistance.
Thought has been given to the possibility of interesting the World Bank but an application to the Bank would not succeed in the present healthy state of the Colony's finances; there was a clear indication of this in a recent report on Hong Kong by an IBRD team which visited the Colony in 1968.
6. In view of the need to restrain public expenditure (particularly for overseas disbursement) the Treasury would be unwilling to agree to any increase in departmental votes for this project.
7.
There have also been informal talks with the Treasury to consider the possibility of Hong Kong borrowing on the London market. This would however present a number of difficulties, not least the probable necessity for a guarantee to be given by
HMG.
Certainly the political risk of an unsuccessful flotation could not be taken. Furthermore if there is to be some recognition in the terms offered to Hong Kong of the UK's admitted civil aviation interest in the project, funds would have to be found to offset at least part of the high charges which would result from the present level of interest rates on the London market.
8.
The application for the loan has been formally lodged with Treasury by the FCO in conjunction with the Board of Trade and inter-departmental conclusions and recommendations will be presented as soon as possible.
No comments yet.
Private notes are available after approval.