:

2

4.

As a result of the fee increases, there has

been a drop of 42% in 1980 in the number of visas issued

to first-time Hong Kong students for entry into Britain.

(Table attached). It is expected that a further drop

will occur in 1981 unless the UK Government grants

preferential treatment to Hong Kong students.

5.

Many Hong Kong students are now turning elsewhere (e.g. Canada) for higher education. This is obviously

undesirable.

13 January, 1981

DRF/HCPLY/SVS

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