Present:

HE The Governor

CS

FS

SHA

SNT

SforSS

S for I

PA PS/GH

CONFIDENTIAL

Mr R D Clift

UK University Fees for Hong Kong Students

Mr Ho said that in his talks with Mr Clift

the problem had resolved itself into a tactical one of whether to wait for the Cabinet decision on principle, which Mr Clift stated would come before Christmas, or to make an offer to contribute funds to the University Grants Committee in the UK. The proposal would be a stop gap measure to assist HMG in its adjustment process for about 3 - 4 years, on the understanding that HK students in Universities and Polytechnics would be charged fees at "home"

students rates (or at least on preferential terms as compared with overseas students). Sir Philip Haddon-Cave said that further consideration would have to be given to the long term problem of utilising places at UK institutes of higher education if this was agreed as policy.

2.

The Governor said that Mr Ho should send a note

on the proposal to the FCO for Lord Carrington to use at

his discretion in the Cabinet discussion. An information

paper on the proposal would be required for Exco explaining

that it was being discussed in broad terms with the FCO.

CONFIDENTIAL

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