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concern, in the United Kingdom and Hong Kong, the Governor set up a

judicial Commission of Inquiry on MacLennan's death. It would be

inappropriate to comment until its investigations are complete.

OVERSEAS STUDENTS' FEES

7. Her Majesty's Government decided in 1979 that they could no

longer afford to subsidise the fees paid by overseas students

(excepting those from the European Community) in the United Kingdom.

There is a good deal of concern about this in Hong Kong, and there

is evidence that large numbers of Hong Kong students who may

otherwise have come to the United Kingdom have applied for North

American courses. The Secretary of State decided earlier this year

not to pursue the case for exemption for Dependent Territory students.

The Hong Kong Government have now announced their own means-tested

loan scheme for Hong Kong students on first-degree or equivalent

courses in the United Kingdom. Meanwhile, the DES and FCO are

monitoring the consequences of the fees decision.

REPRESENTATIVE GOVERNMENT

8. On 14 January, the Hong Kong Government published its White Paper

on District Administration, intended to widen the existing means of

community participation and consultation. Under the proposals, the

present District Advisory Boards in the New Territories would be

renamed District Boards, and similar Boards would be established in

the Urban Area, but with narrower terms of reference so as to avoid

impingeing on the powers of the Urban Council. The District

Management system, already operated in one District, would be extended

to all Districts. Anyone over the age of 21 with a minimum of 7 years'

residence in Hong Kong would be entitled to vote and elections for

the Boards and the Urban Council would be on a constituency basis.

Legislation will be passed on this later this year, with a view to

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