TNAG-0340-FCO40-376-Aid-to-Hong-Kong-from-UK-1972 — Page 98

HKK 5/12

Reference

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SIS

Mr Kerr (PPAD)

1

In the attached letter dated 17 August Mr Haddon-Cave, Financial Secretary, Hong Kong Government puts forward his Government's aid proposals. These arose from discussions between the Secretary of State and unofficial members of the Legislative and Executive Councils during the former's visit to the Colony in February. The Secretary of State undertook to give sympathetic consideration to any aid proposals coming from Hong Kong. He recognised the political need for outward and visible signs for a special and beneficial relationship with Hong Kong.

2.

You will see Hong Kong have come up with 2 major proposals:

(a) for an air traffic control radar simulator

costing £150,000 - £200,000, and

(b) the provision of the Polytechnic library at

around £964,000.

As regards (a) the case is set out in enclosure 1 to the letter. This would appear to be a useful project and one which we should support. The FCO has long argued that some sort of contribution to Hong Kong airport develop- ment would be politically beneficial.

3. I heard of this recommendation whilst I was in Hong Kong in August. I was told that it would be most helpful to Hong Kong's training programme if this simulator could be delivered within a year to 18 months.

4. Whilst we have always thought that aid should be provided that would be in Britain's interest or of an educational nature or preferably both, project (b) for the Polytechnic library goes much further than we had expected. The £964,000 breaks down, as will be seen from enclosure 2, into £370,000 for books and magazines and in addition £460,000 for building the library and £130,000 for furniture and equipment (all approximate figures). Even though this is a large sum there would are be strong general political reasons for finding the money. An aid contribution of this magnitude together with the air traffic control radar simulator and added to the £400,000 already allocated to the technical institutes plus the annual £32,000 for educational assistance would make a very reasonable aid programme. It would be more then the "gesture" which the Secretary of State was asked to support as a demonstration of HMG's interest in Hong Kong. Conversely to reject it would be unfortunate as it would be taken to show that the UK was uninterested in Hong Kong's well-being. From a practical angle it must be advantageous to us to equip a library which will be used by the brightest of the new generation of engineers and technicians.

15.

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