CONFIDENTIAL

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Overseas Students' Fees

3. The Secretary of State's meeting on 29 January decided that, given

the present economic climate, it is not worth consulting other

Ministers on possible concessions for Dependent Territory students.

Sir S Y Chung and Mr O V Cheung mentioned to the Secretary of State

on 2 February that Hong Kong was prepared to support first degree

students by making a direct payment to the UGC. This is one of

several fall-back solutions now being considered by the Governor.

Vietnamese Refugees

4. The UK resettlement quota of 10,000 will be exhausted by April.

The Governor would have preferred Lord Carrington to announce, during

his visit to Hong Kong, a new additional quota of 250 per month for

the rest of 1981. However, officials' view is that Lord Carrington

should raise this issue with his colleagues after his return from

Hong Kong. This will make it easier for him to argue Hong Kong's case.

Multi-Fibre Arrangement (MFA)

5. The MFA is due to be renegotiated this year. HMG are committed

to seeking an effective successor but at the same time appreciate the

significance of the Arrangement for Hong Kong.

The Secretary of State's Visit

6. The Secretary of State will visit Hong Kong from 29 March to

1 April before going to China and Japan. His programme in Hong Kong

will include discussions with the Governor and senior officials on

the above topics, as well as the Hong Kong aspects of UK/China

relations. He will also meet UMELCO and the Urban Council as well

as visiting the security forces and the New Towns.

Hong Kong and General Department

26 February 1981

CONFIDENTIAL

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