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In addition to government schools, those schools in Hong Kong which are

entirely maintained and controlled by the Crown in right of Her Majesty's

Government in the United Kingdom (for example, schools provided for the

children of members of the armed forces serving in Hong Kong) are also

exempt from the provisions of the Education Ordinance and no further

account is taken of them in this report.

3.7

Although the Polytechnic and both universities are self-

governing corporations, they draw their income mainly from government

grants. The financing of the three institutions is under the administrative

control of the University and Polytechnic Grants Committee (UFGC), the

terms of reference of which are

-

"To keep under review in the light of the community's needs

(a) the facilities for university and polytechnic

education in Hong Kong;

(b)

such plans for development of the universities

and the Polytechnic as may be required from

time to time;

(c) the financial needs of university and polytechnic

education; and

to advise Government on the application of such funds as may

be approved by the legislature for university and polytechnic

education."

The UPGC is appointed by the Governor. There is no government

representation on it although its secretariat is staffed by civil

servants.

Block grants are provided over a planning period of three

The government indicates to the UPGC the extent

years (a 'triennium').

and direction of development over the period and, specifically, student

targets. The universities and the Polytechnic discuss their plans for

achieving this development with the UPGC which then makes recommendations

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