CONFIDENTIAL

2.

3. The British Council will now have a major

role to play in China, given its administration of the existing exchange programme (which is

no different in principle, though very different in scale, from the present proposals), its capability in the English language teaching field (including the recruitment of teachers), and the applicability to the proposed programme of

several schemes which it already operates

elsewhere.

4

We have assumed that the Chinese will, as

indicated to Shirley Williams, be responsible

for funding virtually the whole of this

expansion programme (which could cost as much as

£11 million per annum when fully in operation).

However there are certain costs which could not

be passed on to the Chinese. These (excluding

the proposed Royal Society Exchanges with the

Chinese Academy of Sciences, which are the

subject of separate negotiations) would be:

(i)

the administrative costs of managing the

programme in the UK, including the

placing of Chinese students and the

recruitment of British teachers to

work in China;

/(ii)

NOTHING TO BE WRITTEN IN THIS MARGIN

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