2776
Sir L Monson
CONFIDENTIAL
22
EQUIPMENT FOR HONG KONG TECHNICAL INSTITUTES
1.
Mr Price of the DTI telephoned me about this this morning. He had just seen Mr Kisch's letter to me of 11 February.
2. Mr Price said that they were most concerned in the DTI about the proviso that "British industries should put up a matching contribution on lines similar to the arrangements made for the Indian Institute of Technology some years ago". He asked what was the reasoning behind this. Mr John Davies had made it clear in his minute to the Secretary of State of 15 February that he saw no prospect of a contribution of this order from industry in present circumstances. Mr Price also said that the arrangements for the Indian Institute of Technology were made in 1958 in entirely different circumstances. It would be very difficult indeed in the present climate (the failure of Rolls Royce) to obtain anything from industry. Apart from that, the use of aid in the commercial context raised wider considerations. The DTI did not want to get themselves into a position in which British industry "could put a squeeze on them".
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3. Mr Price also made the point that any contribution from industry would dilute the impact of the offer. We were trying to counter an offer made by the Japanese Government.
4. I explained the present position, as I knew it, and undertook to ring Mr Price back later today. He said that he would take no further action in the DTI until he had heard again from me.
5. I have already given the gist of the above to Mr Wilford.
17 February 1971
сс
Mr Wilford Mr Logan
CONFIDENTIAL
EMaria
E O Laird
Hong Kong Department
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