TNAG-0255-FCO40-291-Contributions-of-Hong-Kong-for-costs-of-maintaining-military-1971 — Page 48

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thought the Treasury were in those days more than purblind in not realising that a low level of taxation was a necessary part of Hong Kong's prosperity. But I never could shift them from their doctrinaire belief, which amounted to an article of faith with them,

When that Hong Kong ought to raise more funds by way of taxation. we eventually did prize some help out of the Treasury (of the order of £100,000) on political grounds they insisted, for what I can only describe as doctrinal reasons, that it should be channeled through an international organisation (I believe the international refugee organisation) and not go direct to the Hong Kong Government. This of course only made matters worse with Hong Kong unofficials, who saw this as further proof of the indifference of HMG in general and of the malevolence of HM Treasury in particular towards the Colony and its problems.

5.

Kwan

a

So, as I say, what seemed to me to be motivating C. Y. and those of his colleagues who made the point was a strong emotional feeling that Britain should at least treat Hong Kong with some warmth and generosity, rather than something they regarded with at best indifference and all too often with hostility as place that caused embarrassing problems in relation to Lancashire (and I recall that in 1966 there was a good deal of hostilė, unin- formed and indeed malicious propaganda put out by Lancashire against Hong Kong).

6. It was therefore a gesture of warmth and solidarity that the unofficials were seeking when Mr Lee was there in 1966. Mr Lee was very impressed with Hong Kong, realised what a tremendous achievement it represents, unquestionably felt a great deal of sympathy with the Colony, and was perhaps a little incautious in the general warmth of his remarks although certainly he never gave in

a commit- my presence at least anything that could be regarded as ment or an undertaking other/that he would examine whether there was any way in which it would be possible for HMG to make a gesture to Hong Kong in the aid field.

7.

Before we left Hong Kong I remember discussing with David Trench what form such a gesture might take, should we succeed in striking any sympathetic chords in the breasts of other departments of HMG. It was pretty late at night, after a heavy day's nego- tiation, but the idea we worked out wat that HMG and Hong Kong might jointly put up the capital needed for the establishment of a new technical training institute at intermediate level. The idea we hatched was that Britain and Hong Kong would each put up 50 per cent of the capital outlay, Hong Kong would bear the whole of the recurrent expenditure and in return for Britain's contribution towards the capital expenditure Hong Kong would undertake to provide a generous number of places each year for Colombo Plan students. This latter provision would of course have benefited Hong Kong as well tradewise; and all in all it seemed to both of us a good and sensible project which would be well worthwhile in itself, would benefit Hong Kong, would be of benefit in the Colombo Plan context and would certainly have been regarded in Hong Kong as the warm hearted gesture they needed from us.

/8.

/than

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