TNAG-0340-FCO40-376-Aid-to-Hong-Kong-from-UK-1972 — Page 86

Mr Windsor (Finance Dept, ODA)

69)

AID TO HONG KONG

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1. We spoke on the telephone this afternoon and I told you that we had recently received a formal request for aid from the Hong Kong Government. This arose from the Secretary of State's discussions in the Colony when he was there in February and when he asked for definite proposals.

2. I told you I had just now seen your Department's circular of 22 August asking for estimates of aid for 1973/74 to 1976/77. You asked me to let you know what sums we are bidding for. At the same time I undertook to let you know the position concerning possible reallocation of some technical assistance funds.

3. To take the latter first. Aid has been allocated for technical assistance to the technical institutes amounting to £400,000 of which £100,000 has been ear- marked for the Morrison Hill Institute (please see Mr Hillier-Fry's letter of 1 March (your reference MID 77/284/04) to Hr Laird). The present position on this, as far as we can discover, is that no detailed request has been received from Hong Kong concerning the disbursement of these sums. It therefore looks likely that we shall wish to have this aid reallocated to next year. There has been a hiatus caused through the transfer of aid responsibility for Hong Kong from ODA to this Department, whilst all earlier papers remain in the ODA.

4.

The new proposals put to us from Hong Kong cover 2 projects. The first is for an air traffic control radar simulator which is estimated to cost in the region of £150,000 to £200,000. This should be supplied in about 18 months' time and would presumably fall for payment in the 1973/74 financial year. The second project is to build, furnish and equip a library for the Polytechnic. The Hong Kong Government estimate this will cost £964,000 spread over 3 financial years as follows (approximate figures):

1973/74 1974/75 1975/76

£150,000

£350,000

£500,000

5.

I shall send in due course our detailed proposals in respect of this aid in accordance with Mr Burr's minute.

26 September 1972

M A Goodfellow

Hong Kong & Indian Ocean Department

/PS