CONFIDENTIAL
students already on first degree or equivalent courses.
Long-term means-tested loan scheme came into operation in
September 1981. But it has not achieved aim of maintaining
numbers of Hong Kong students coming to UK.
12.
Overseas Students Trust reported in June 1982 on
long-term policy towards overseas students. Recommended home
student status for students from Dependent Territories with,
in the case of Hong Kong, joint subsidy by HMG and Hong Kong
Government (HKG).
13.
Extra
HKG have proposed HMG and HKG share equally difference
in cost between overseas and home levels of fees after means
test to determine student's possible contribution. No limit
proposed to number of students eligible for assistance.
money (probably around £1.6 million in 1983/84 rising to
£5.15 million in 1987/88) would be needed. ODA are now
spending £40 million a year on subsidies for foreign students.
It would be difficult to increase this expenditure at a time
when overall spending on education is falling. But HKG's proposals
would provide a valuable boost for UK/Hong Kong relations
and sign of HMG's commitment to Hong Kong's future, embodied
in her young people. Rejection would further damage our
relations. The scheme or a variant will have to be examined
in context of what is required for other Dependent Territories,
although this would be a very small proportion.
12
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