CONFIDENTIAL
BRIEF FOR SECRETARY OF STATE'S VISIT TO HONG KONG
AID TO HONG KONG.
FEBRUARY 1972
Aid Policy
1.
Bilateral financial aid to Hong Kong is unjustified using normal aid criteria.
In 1969 per capita income was US$850. The Hong Kong Government has been running vast surpluses on its budget for several years, (£9 m in 1970), and should be perfectly able to raise local loan if it so wishes while the most recent estimate of its
of which about £300m are official reserves, foreign exchange reserves is £500m
2.
In the past the explanation for not giving aid that has been given for public consumption in Hong Kong has been based on the UK balance of payments position. It
has however been made clear to the Governor of Hong Kong that there is a strict ceiling on overseas aid expenditure which means that it is only possible to increase aid to one country or territory at the expense of another and that since Hong Kong is a relatively affluent society with a buoyant economy there is no case on economic grounds for Hong Kong to be given any measure of priority at the expense of our poorer clients in the allocation of aid funds. There is no objection to the Secretary of State using
these arguments to the Press or unofficial members of the Executive Council. urgent need for financial assistance arose the British Government would be prepared to consider any specific case put forward by Hong Kong, but it is difficult to see such a situation arising in their present financial situation. There are no such
cases outstanding at present.
Technical Assistance
3.
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For the reasons given in paragraph 2 it is not the policy of the Overseas Development Administration to provide Technical Assistance, such as the provision of experts, to Hong Kong other than the continuation of a long-standing arrangement for the training in the United Kingdom of people from Hong Kong. The cost of this scheme
is pegged at £32,000 per annum.
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