CONFIDENTIAL

DSR 11C

1. 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;

2. the cost to Britain of scholarship exchanges

in the humanities and of developing academic

cooperation, which the Chinese have proposed

should be shared;

3. the cost of the necessary reinforcement of

staff in Feking.

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.

Details are given in the attached schedule.

7. 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

additional contributions. There is, however, a limit to

what can be done through the redeployment of existing

funds. I should therefore be grateful for your agreement

to our responding to the Chinese proposals by the provision

of the necessary additional funds to the Contingencies

Fund.

8.

I am copying this to the Secretary of State for

Education and Science.

CCNFIDENTIAL

Da 427265 250M 5/77 905275

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