TNAG-0535-FCO40-630-UK-aid-to-Hong-Kong-Polytechnic-and-technical-institutions-1976 — Page 22

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BRITISH TRADE COMMISSION IN HONG KONG

Mail Address: P.O. Box No. 220, Png Kang Cable Address: "Ukarade Hongkong" Telephone- 230173

9th Floor, Gammon House, 12 Harcourt Road, Hong Kong.

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CW Roberts Esq CRE4

Department of Trade 1 Victoria Street

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200 74/1

1-December 1975

I enclose a copy of a letter from Shipman in the Colonial Secretariat here to Tony Hutton referring to a conversation between Dr S Y Chung, the Governor and the Secretary of State,

I also enclose a copy during r Shore's visit in Septe aber. of a letter from Less, the Director of the Polytechnic, to Sir Lurrey, written at the time of the Secretary of State's visit.

2. I was not present at the discussion, but I think the issue may have become confused with the 1 million grant egroed in principle during the previous administration. This, as you know, WRs allocated partly to Technical Institutes for machinery, with a large slice to the Folytechnic for the purchase of books and so.19 specialised equipment. I warned Dr Legg some time ago that I saw no prospect of HG agreeing to the allocation of further aid to Hong long and that subsidies for exports would be frowned upon

I also told him that I sav as being contrary to the GA rule. little prospect of British companies providing equipment at special low rates; and that, in any case, it has been made clear to me by the Socrotury of the University Grants Committee that the Committee would frown upon the by-pessing of normal tender procedures (other than Governaent to Government aid). I suggested, as an alternative, to ir Chung and, subsequently, to Dr Legg that the most effective way of ensuring a keen price for British equipment might be to arrange a package deal through the Cohen 600 Group, which specialises in turnkey operations and has the necessary back-up organisation at this end. As a result of this approach, a malher of the Polytechnic staff called on the Cohen 600 Group recently while he was on leave in England. He was, I gather, suitably impressed by the service they can offer and, as a result of this visit, & ir Farke of the Group has just arrived in long long for discussions with the Polytechnic.

3. Needless to say, if any arrangement could be made offectively to subsidize the cost of supplies of equipment from Britain for the Polytechnic, I would be delighted. But I have been working on the assumption that this is a non-starter and that the package approach is the best we can do as an alternative. If my assumption about further aid or a subsidy is correct, I would be grateful if the Hong Kong authorities could be so advised as noon as possible. Having gone to considerable lengths to get the Polytechnic interccted in the package approach and with Parke here right now, I am anxious

i verthort in toade to enters that the bag.mation paven hovin is aspirat :, but movi

Jesper abdity is accepte i for any errors or omissions

ip that horization and no 1-ponsibilty is accemosa in rovard to die sturdate of ung barat, come une da her in Hviduals mentioned.