RESTRICTED
OVERSEAS STUDENTS' FEES : ESSENTIAL FACTS
DECISION
1.
Decision in November 1979 to withdraw subsidy from fees paid
by overseas students, including those from Hong Kong, made purely
for financial reasons. New money would be required to reinstate
subsidy for Dependent Territories, but not likely to be available.
FUTURE
2. Drop of over 50% in Hong Kong students coming to UK and
comparative increase in number going to United States and Canada.
Accept importance to both UK and Hong Kong of having Hong Kong
students in UK. We are monitoring consequences. Overseas Students
Trust examining number of options; report to HMG expected in
April 1982. FCO contributing paper on political priorities.
Ministers not committed to accepting Overseas Student Trust's
conclusions but bound to consider their recommendations carefully.
HONG KONG SCHEME
3. Hong Kong Government instituted emergency loan scheme to help
needy students already on first degree or equivalent courses.
Long-term means-tested loan scheme came into operation in September.
for full-time students on first degree and equivalent courses.
Consists of interest-free loan replaying in 20 quarterly instalments
after completion of courses. However scheme has not been achieving
aim of maintaining number of Hong Kong students coming to UK.
Hong Kong Government investigating possibility of changing loans
into grants. A UK contribution would be appreciated but seems
unlikely.
Hong Kong and General Department December 1981
RESTRICTED
1