CONFIDENTIAL

-3-

THE MACLENNAN AFFAIR

6. Police Inspector MacLennan was to have been arrested in

January 1980 on charges related to homosexual acts (illegal in

Hong Kong). The arresting party found MacLennan locked in his

bedroom dead from 5 pistol wounds. Despite overwhelming evidence

that MacLennan has committed suicide, the Coroner's Jury returned

an open verdict. This fuelled rumours that he had been murdered

to protect senior government servants who were also homosexuals.

Following increasing 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.

NEXT GOVERNOR

8. Sir Murray MacLehose is to retire in April 1982.

have yet been made on his successor.

No decision

CONFIDENTIAL

/REPRESENTATIVE

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