PA.
CONFIDENTIAL
File
ве
MR KING, ODA
CAPITAL AID FOR HONG KONG
-1.
You will have seen Mr Bottomley's minute of 10 October, in paragraph 9 of which he told you of our hope that you would give a favourable reception to proposals being put forward for capital aid to Hong Kong.
2.
As Mr Bottomley mentioned in his minute, when the
NKK 3/548/5 Secretary of State visited 'Hong Kong in February, he undertook
3108/2, during his meeting with Unofficial Members of Legislative and
1
J
Executive Councils to consider the provision of capital aid.
is due to visit Hong Kong again on 2 - 3 Novombor. Mr Roylo
is also due to visit the Colony from 10 15 Novembor. The HK 2 Secretary of State may well be tackled on the subject when he
75) meets Unofficial Members this time. Meanwhile we have just
He
received a telegram from the Governor recommending that Mr Royle, during his visit, should be in a position to make an announcement about aid to Hong Kong. I know that Mr Royle would very much like to do this.
3..
1
We would not wish to put forward a case for aid to Hong Kong on grounds of economic need. We recognise that the Colony's estimated GNP is too high for this. There are however several other criteria on which a compelling case can be made out:
·(a) It is, I think, agreed that the dependencies in
1
principle have a first call on our aid resources. The Governor has said that Hong Kong has a political need for outward and visible signs of a special and beneficial relationship with the UK. Carefully selected aid could meet this need.
#
(b) We are going through a particularly difficult time in our relations with Hong Kong. · Only last week, after very strong pressure from UK industry, we got Hong Kong officials to agree, with the greatest reluctance to limitations on the levels of their exports of polyester cotton textiles to this country. We do not yet know if the Executive Council will endorse the agreement. Hong Kong depends of course on exports for a living. We are also in difficulties over currency: Hong Kong estimate that they have lost over £50 million as a result of the floating of sterling
/and this
CONFIDENTIAL
No comments yet.
Private notes are available after approval.