TNAG-0337-FCO40-373-Visit-of-the-Chancellor-of-the-Duchy-of-Lancaster--Sir-Geoff-1972 — Page 28

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HKK 3/125/12

CONFIDENTIAL

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AID TO HONG KONG

1.

Britain at present supplies hardly any aid to Hong Kong.

This is because the ODA do not consider the Colony aid-worthy

in view of its large financial resources. They are, however,

committed in principle to providing £400,000 for Technical

Institutes.

2.

During the Secretary of State's visit to Hong Kong last

ebruary an understanding was reached about aid. The Governor

had pointed out that, whilst Hong Kong might not have an

economical need for aid, it did have a political need for

out:ard and visible signs of a special and beneficial

relationship with the United Kingdom. Carefully selected aid,

even if of comparatively small amounts, could meet this need.

In view of the criteria for aid normally applied, it seemed

useful for proposals to be made which involved a British

interest, or which were educational, or both. Two subjects

which suggested themselves were accordingly navigational aids

for Kal Tak airport; and equipment for the Polytechnic.

3. The Governor took the view that it would be better for

the United Kingdom not to take the initiative in offering aid.

It would be preferable to respond as quickly as possible to a

request from Hong Kong. It was left that the Governor would

look into the possibilities with a view to stimulating

appropriate requests.

4.

We have just received the Governor's proposals. (Mr Haddon-

Cave's letter of 17 August, without enclosures, is attached.)

CONFIDENTIAL

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