TNAG-0334-FCO40-370-Visits-of-Secretary-of-State-for-Foreign-and-Commonwealth-Af-1972 — Page 201

少

CONFIDENTAL

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BRIEF FOR SECRETARY OF STATE'S VISIT TO HONG KONG FEBRUARY 1972

AID TO HONG KONG.

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

₤44 million in 1970/1

(Sept71)

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,

₤682

foreign exchange reserves is £500m

2.

www.

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

14416

has, however, been made clear to the Governor of Heng long 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

ne

of-State using these arguments to the Press or unofficial members of the Executive Council. Ifjan

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

normal

3. For the reasons given in paragraph 2 it is not the policy of the Overseas

-recruitment 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 cost of this scheme

the training in the United Kingdom of people from Hong Kong.

is pegged at £32,000 per annum.

hat any retrate

(White / kettunan

CONFIDENTIAL

Hower, ODA Syrial

asuries dons. Along Yerry periodically

2

Ex UK Factory Insprutors

1970

3 minho in HK in

Hong Kong to benefit from the

Hong Kurry producally expert advice I

ODA NLMWA

ODA Muil adres who

Dicial visit the Colony periodically.