CONFIDENTIAL
OVERSEAS STUDENTS' FEES: ESSENTIAL FACTS
ORIGINAL DECISION
1.
The decision to increase overseas students'
fees to full cost
was made purely for financial reasons. FCO was not properly con-
sulted before the decision was taken; effect on our foreign relations
and relations with dependent territories was not fully considered.
The saving to the DES Vote will amount to about £90 million a year.
No possibility of making good the amount from FCO or ODA Votes and
the Treasury are opposed to finding new money to pay for exceptions.
DES argue that if they are required to pay for further exceptions,
there will be adverse effects on the education of British students.
CURRENT EXEMPTIONS
2.
We were able to obtain the concession (to charge home student
rather than full cost fees) in favour of the EC for two reasons:
(a) Community regulations would shortly have required it;
(b) it is reciprocal.
REACTIONS
3.
Much criticism of the decision both in Parliament and outside
on political, developmental, commercial and defence grounds. Repre-
sentations have been received from many foreign and Commonwealth
Governments. The poorer Commonwealth countries and some of the
dependent territories, particularly Hong Kong, resent the favourable
treatment granted to EC students, and especially to territories such
as the French Overseas Departments and Gibraltar.
4.
The Governor has warned that the drift away from British places
of education has already started. Applications for student visas to
the UK from Hong Kong are 30-40% down on the same period last year
with a substantial increase in those applying to go to Canada.
CONFIDENTIAL
/FUTURE