7447 D073840 101M 8/74 Cr.P.C. 839/3

NOTHING TO BE WRITTEN IN THIS MARGIN

(ii)

(iii)

CONFIDENTIAL

3.

the cost to Britain of scholarship

exchanges in the humanities and of

developing academic cooperation, which

the Chinese have proposed should be shared;

the cost of the necessary reinforcement of

staff in Peking.

The above three elements add up to a requirement

for additional funding from the British side

amounting to £440,000 in 1979/80 and rising to

£1,050,000 in 1985/86.

the attached schedule.

Details are given in

(Annex A).

5. By redeployment and cutting down on other

programmes, the British Council have already doubled

their budget for China in the current year (from

£60,000 to £120,000) to meet earlier Chinese

requests for extra exchanges; and the Royal Society

and Great Britain/China Centre have also made add÷

itional contributions. There is, however, a

limit to what can be done through the redeployment

of existing funds.

on this problem.)

(I attach at Annex B a note

I should therefore be grateful

for your agreement to our responding to the Chinese

proposals by the provision of the necessary

additional funds from the Contigencies Reserve

to the FCO's Grant in Aid to the British Council.

16.

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