TNAG-0534-FCO40-629-UK-aid-to-Hong-Kong-Polytechnic-and-technical-institutions-1975 — Page 35

point

CODE

18-77

Reference.....

3.

Subparagraph 2(10): Clearance with other Whitehall Departments.

I told Mr White that the paper had not been cleared with the Department of Trade or the Treasury. In view of the fact that sections of the paper will have to be re-drafted subsequent to an advisory visit there seems little/in involving these Departments at this point in time.

Subparagraph 2(11): Cash figures and exchange rate.

I said we would show all cash figures in sterling in our revised draft, but I pointed out that the exchange rate is liable to fluctuation and suggested we use an average figure say $11.50 equals £1; Mr White agreed with this.

Subparagraph 2(12): Total cost of project.

From research into the papers the most up-to-date figure for the cost of establishing the Polytechnic is £16 million.

Subparagraph 2(13): Expenditure in relation to expenditure on the Technical Institutes Project.

15

As indicated in paragraph 2(6) I saw PC (73) minutes 15) (Flag F) for the first time last week and was not aware of the Projects Committee's ruling that expenditure on the equipment for the Polytechnic should not run concurrently with expenditure on equipment for the four technical institutes. I explained to Mr White that in all our returns to Finance Department we had shown expenditure on both projects running concurrently and no questions had been asked. Since Mr Rae, now Head of Finance Department, was aware of the ruling I would have thought that this would have been picked up. I see that Mr Rae was asked to emphasise this point to HKIOD, if he did so I can find no trace of his minute or letter. I think this is something that perhaps Mr O'Keeffe should take up with Mr Rae. Morrison Hill Technical Institute is already established and the second technical institute is shortly to start operating. We already have a list of equipment required by Morrison Hill and it would seem out of the question to require the technical institute to wait until probably 1980/81 or possibly later for the money promised to them.

Subsequent to my talk with Mr White I telephoned Mr Davies to seek TETOC's reaction to Dr Hunting making a visit to Hong Kong in the near future, indicating that I would seek approval for the cost of such a visit to be met from the ODM office vote, since it would be in the interests of the ODM. Mr Davies said that TETOC would pay for the visit, but since Dr Hunting was abroad he could give me no indication of the timing. He said he would telephone toward the end of next week after having discussed this with Dr Hunting on his return. Perhaps I should accompany Dr Hunting on his visit to re-write the paper in Hong Kong! It is envisaged that Dr Hunting would not only visit with the intention of strengthening the Polytechnic paper, but would gather material for inclusion in and the strengthening of the paper covering the grant to the technical institutes.

14.