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A.

The current membership of the UPGC is shown at Appendix Changes in membership up to the end of June 1978 were reported in the Introduction to our report for July 1976 June 1978, published in December 1978. Subsequently five members

Since

Mr. J.J.G. Brown, the Hon. Oswald Cheung, Dr. A.M. Fraser, Mr. HO Sai-chu, and Mr. Dennis H.S. Ting- have retired. the Committee's recommendations in 1977 it has held two meetings in Hong Kong and two in London.

5.

In 1977 the recommendations for recurrent grants for the 1978-81 triennium were, as on previous occasions, accompanied by capital recommendations for the same period. While this had the advantage of relating capital proposals to recurrent, in practice the projects concerned were unlikely to be completed in the recurrent grant period. This problem has already been a discussed with Government in the context of the phasing of capital expenditure in the annual Estimates, and it has been agreed that UPGC should henceforth prepare capital proposals annually. The first such proposal has been discussed and is being submitted at the same time as these recurrent grant proposals for the next triennium.

6.

The framework for development in the 1981-84 triennium is to be found in the 1978 White Paper on the Development of no Senior Secondary and Tertiary Education, as amplified by the Chief Secretary's letter of 2 February 1979 to the Chairman. important policy documents the UPGC was asked -

(a) to achieve a university student target of

11,300 by 1983-84, advising how this total should be distributed between the two universities;

(b) to assume that annual growth at the univer- sities would continue at 3% compound during

the 1980s, and to advise in March 1980 on the

CONFIDENTIAL

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