TNAG-0340-FCO40-376-Aid-to-Hong-Kong-from-UK-1972 — Page 15

CODE 18-77

Reference.

сс

Mr Windsor

90)

Mr Church

Mr Goodfellow (HKIOD)

AID FOR HONG KONG - 1973/74 ESTIMATES AND FRAMEWORK

We spoke last week about the provision required for Hong Kong within the 1973/74 Estimates.

2.

I have now checked our papers. My understanding of the position is that we provide annually an allocation for training and scholarships which comes within the normal Regional Technical Assistance Programme, and that we have agreed in addition to provide, from Technical Assistance funds £400,000 towards the costs of equipping the Technical Institutes and £500,000 for books and equipment for the Polytechnic. Technical Assistance funds take the form of grant aid. We have made it clear that we would not expect to be disbursing funds both on the Technical Institutes and the Polytechnic at the same time.

3.

I understand that you told Mr Windsor that you would shortly be writing to Hong Kong to check what disbursements, if any, might arise during 1973/74. We have agreed that, if necessary, the Dependent Territories Technical Assistance allocation could be increased by up to £100,000 specifically to accommodate any disbursements from this programme in 1973/74. For estimates purposes at present, I do not propose to seek increased provision for the Dependent Territories Technical Assistance Programme. Your regular expenditure on training and scholarships should be met within the existing framework allocation - I will shortly be checking Dependent Territories estimates bids against this. When you hear from Hong Kong whether disbursements are likely under this Technical Training Programme perhaps for the Morrison Hill Institute equipment - perhaps you will let us see the forecasts. We can authorise you to spend up to £100,000 during the next financial year on the specific projects, and if, towards the end of the year, it becomes clear both that the Dependent Territories Technical Assistance allocation will be exceeded because of these costs for Hong Kong, and that Finance Department cannot meet the excess by virement from elsewhere within the Technical Assistance subhead, we can seek increases in the Spring supplementary estimates for 1973/74.

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This means that no specific provision for Hong Kong will be identified either in the printed Estimates or in the circulated aid framework summary. It will be wrapped up in the Dependencies Technical Assistance item of the framework, and the Dependancies section of the Technical Assistance Vote, II, 5, C.

HAB Athen

M A Pattison

7 November 1972

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