CONFIDENTIAL
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HKK 5/12
Mr Logan
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AID FOR HONG KONG
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A.R.
Mr Mw fellow Go
PALE W3/11
84
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1. Mr Wood has agreed that the ODA will make available about £2 million for technical assistance to the new Polytechnic in Hong Kong (Mr King's minute to Mr Wilford of 24 October). is just over half of Hong Kong's original bid for this project and excludes the £450,000 for the actual building.
2. Mr Royle wishes to make an announcement of this grant when he is in the Colony next week. I would recommend that at the same time the Minister publicises the £400,000 which was allocated some time ago to the other technical institutes (including £100,000 for Morrison Hill). No publicity has yet been given to these grants. The combined amount is some £900,000. There are provisos on the timing of the spending of the allocations but the Minister need not go into these details. Only the Morrison Hill Institute is completed so that it is not possible at this stage to say how and when the money can actually be spent.
3. In his telegram No 921 the Governor expressed the hope that Mr Royle might make an announcement about aid for the Polytechnic. The Minister may wish to send Sir Murray MacLehose advance notice that he will do so. I attach a draft telegram accordingly.
4.
In the brief for the Secretary of State on this subject it was suggested that if asked the Secretary of State should say he hoped we would be able to do something for the Polytechnic, but that Mr Royle would have details.
5. FPAD concur. Mr Smith, Under Secretary in charge of ODA Finance Department, advises that the provision of substantial aid to so comparatively rich a dependency as Hong Kong may attract questioning and adverse comment in the UK. He would see advantage in placing the emphasis on the use to which the money is to be put, ie the Polytechnic, rather than the amount. He would therefore also see advantage in not referring at the same time to the £400,000 already committed to the other technical institutes. This however would decrease the impact in Hong Kong, where the announcement is to be made. Particularly in view of all our other problems with Hong Kong, Mr Royle may consider that this impact outweighs the possible risk of cirticism here foreseen by Mr Smith.
6.
In view of the shortage of time before Mr Royle's departure, I am submitting directly to you, with a copy to Sir D Watson.
R.b.
R B Crowson Hong Kong and
Indian Ocean Dept
CONFIDENTIAL
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