TNAG-0229-FCO40-265-Long-term-study-of-future-of-Hong-Kong-1970 — Page 40

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16. For two years attempts have been made without success at

official level to obtain a measure of assistance. The Treasury

have considered that in our present economic circumstances Government

expenditure should not be increased for this purpose; the necessary

funds must be found from existing sources. The only possible major

source of existing funds is the Aid Programme; the ODM do not

consider Hong Kong to be "aidworthy" and hold strongly to the view

that Board of Trade votes for civil aviation are the appropriate

source for expenditure in aid of British aviation interests.

Board of Trade votes have been effectively pruned in past exercises

to contain government expenditure and there is no money to spare

for additional projects; even a minor allocation, it is claimed,

could only be found at the expense of aviation development in the

UK. Other quasi or non-governmental sources have been explored

without result.

17. On financial grounds Hong Kong's case for seeking assistance

is weak. Government reserves at about £80 million are considerable

(although there will be many heavy calls on these in the years

ahead); Government revenue continues to be buoyant, throwing up

a steady succession of budget surpluses. The case for assistance

must rest largely on the political grounds set out in paragraph 14

above and on meeting the strong public feeling in Hong Kong that the

UK has an obligation to share in the cost of maintaining an airport

from which British aviation interests derive substantial benefit

and where the traffic rights are controlled by HMG in those interests.

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