TNAG-1745-FCO40-2464-Visits-by-FCO-officials-to-Hong-Kong--including-visit-by-Lor-1988 — Page 14

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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scarce staff resources in ODA and the Embassy to be concentrated on ATP.

The programme has been formulated with our commercial interest very much in

mind but, quite rightly, taking a positive view of the long term benefits of

activities such as ELT and training. It cannot unfortunately be readily

replicated elsewhere; we started virtually from scratch three or four years

ago, unencumbered by the complex historical baggage which weighs on our aid

relationship with recipients like India. The programme in China very

clearly provides excellent value for money: perhaps more so than any other

country I have visited. Aid is used highly effectively by the Chinese.

6. Our consultancies

programme focusses on specialised areas where China

lacks expertise. I visited a canal irrigation and water supply system near

Peking where the contributions of several British companies are clearly-

#greatly valued, and also went to see a low cost housing project in Chengdu,

Szechuan province. The consultancies programme makes an important

contribution to Chinese projects and is valuable to UK companies in

introducing firms to the China market and securing (non aid financed)

equipment exports. This part of our programme is set to expand

substantially, as is our ELT programme, through which we are currently

supporting about 40 British experts, Chinese counterparts in UK, books and

other materials. There is a strong Chinese commitment to increase knowledge

of the English language, and I was both surprised and impressed by the

number of my interlocutors who had at least a working knowledge. Our effort

is carefully geared, by concentrating on key institutions, to secure the

maximum multiplier effect. This is an area in which the UK has an obvious

comparative advantage, and I saw good examples of our work in Chengdu and

Shanghai.

7.

I was impressed by the Universities I visited in Peking, Chengdu and

(particularly) Shanghai, and we are building a valuable link programme

between these and other Chinese institutions, and British universities and

other centres of excellence. In addition to these links (now nearly 100 in

number) we support through several training programmes about 1,000 Chinese

students in UK. I think that the planned-expansion of the FCO SAS to

provide 100 new senior fellowships-for-high fliers should be-particularly

valuable.

/8.

CONFIDENTIAL

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