CONFIDENTIAL
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FUTURE ACTION ON DEPENDENT TERRITORIES
5. Secretary of State, while not optimistic, has agreed that
FCO should seek exemption for Dependent Territories. For 1980/81
this would cost £4.5 million. Treasury strongly opposed to this
exemption. Cabinet Office Paper nowbeing drawn up for Ministers.
FALL-BACK SCHEMES
6.
Without prejudice to our agreement on point of principle need
to consider contingencies;
a) if Ministers agree only to a contribution from UK funds
to a joint scheme with the Hong Kong Government;
b) if no UK funds are agreed at all.
Governor has suggested posible joint Hong Kong / UK loan scheme.
HMG and Dependent Territory Governments would jointly subsidise
first degree sutdents only. In Hong Kong's case this would cost
£1.5 million, to be shared equally between the two Governments.
Hong Kong and General Department
30 October 1980
CONFIDENTIAL