TNAG-0340-FCO40-376-Aid-to-Hong-Kong-from-UK-1972 — Page 146

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5. Mr Bird said that the discussion had given him the insight into the ODA's workings which he required but said that he thought there was a need for all sides to improve efforts in relation to known projects. The Chairman thought that the trouble stemmed partly from the lack of a co-ordinating body. In respect of known projects, Mr Bird cited that for the llong Kong Rapid Transit System and asked whether the ODA could finance the consultancy which would, perhaps, be a counter to a possible Japanese offer. He said that UK industry had a contact in the Hong Kong Legislature who could probably induce the Government to make a request.

The Chairman pointed out that not only had the UK virtually no aid programme for Hong Kong, but that the project was essentially a commercial matter. He thought that, although commercial interests are taken into account in disbursing aid moneys, the commercial function of this project was such, and Hong Kong was so rich, that the Minister would not be justified in making aid funds available. Mr Glaves-Smith commented that ECGD would be making funds available for the project but that there was a huge gap to be filled.

Sir Michael Walker joined the meeting

6. Mr Bird asked whether in the event of a tender being unsuccessful, financial assistance could be given in the same manner as will be given to consultants. He pointed out that tendering could be expensive say £150,000 for a nuclear power station. Sir Michael Walker thought that financial help in that respect could possibly be in line with helping with a feasibility survey but the Chairman suggested that there would be a danger of helping an unsuccessful tenderer to compete against another UK tenderer. Mr Gordon thought that the BOTB should not have to lean on the CDA and should have direct access to the Treasury. Mr Bird agreed that that was the nub of the problem and said that the OPG was prevented from doing a proper job because its total resources were insufficient. He said that this was one of the possible improvements he would be looking into.

7. Following further discussion, the Chairman promised (i) to let Mr Bird know about the latest developments in respect of a loan for the extension of the Owen Falls Hydro-electric Station project in Uganda and (ii) to arrange for copies of the ODA's newspaper, "Overseas Development" to be sent each month to Mr Bird, personally.

TD Wright

Aid Policy Department

Overseas Development Administration

25 July 1972

Distribution:

Those present Mr M G Smith

Mr Radford

>

Mr I H Harris )

ODA

Mr Thain

>

Mr M A Goodfellow FCO

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