TNAG-0334-FCO40-370-Visits-of-Secretary-of-State-for-Foreign-and-Commonwealth-Af-1972 — Page 198

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

foreign exchange reserves is £500m of which about £300m are official reserves,

2. In the past the explanation for not giving aid that has been given for public

this

NAIS ér Jag Jong has been based on the UK balance of payments pos

Clearly

It

haplain to me ede YouKing

has however been made clear to the Governor of Hong Kong that there 18

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

which would inevitably have to he

for Hong Kong to be given any measure of prio:

priority

There

at the expense of our poorer clients,

in the allocation of aid funds. There is no objection to the Secretary of State using

1.]

If an

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

Tout

such a situation arising in their present financial situation.

cases outstanding at present.

Technical Assistance

3.

There are no such

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.

mofficial

Th

muutus of the hexecutive Commill that

CONFIDENTIAL