CONFIDENTIAL
MEETING WITH UNOFFICIAL MEMBERS OF THE EXECUTIVE AND LEGISLATIVE COUNCILS (UMELCO), URBAN COUNCIL AND PRESS CONFERENCE
ESSENTIAL FACTS
3
DEFENCE COSTS AGREEMENT
1.
(See Brief No.5) The Governor will have to seek the Legislative
Council's approval of Hong Kong's contributions under the new Defence
Costs Agreement. Since this is likely to be double the contribution
under the present agreement, Unofficial Members, in particular, are
likely to oppose it.
2. The Secretary of State should explain the financial constraints
in which MOD are working. HMG are having to be ruthless in their
control of public spending and it is only reasonable that the Hong
Kong Government contribute its full and fair share.
3. It is expected that Mr Hayhoe (Parliamentary Under-Secretary of
State for Defence) will conclude the negotiations for a new DCA during
his visit. He will be present at the meeting with UMELCO.
OVERSEAS STUDENTS' FEES AT UK INSTITUTIONS
4. HMG's priority to reduce inflation involves a serious reduction
in Government expenditure. The charging of full cost fees for all
overseas students will save the Exchequer about £90 million per year.
Given HMG's special responsibility for the Dependent Territories, the
Secretary of State has agreed to press his Cabinet colleagues to
create a special category for exemption once we know the effect on
Dependent Territory student admissions of the higher fees. However,
in view of the financial constraints on the DES, the prospects are not
good.
NATIONALITY LAW
5. (See Brief No.7): The underlying anxiety on the part of UMELCO
has been that the new law represents a distancing of Hong Kong from
the UK. Whilst UMELCO has never been happy with the abandonment of a
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CONFIDENTIAL