CONFIDENTIAL

LORD BELSTEAD'S VISIT TO HONG KONG : 6 TO 10 DECEMBER 1982

BRIEF NO.4: OVERSEAS STUDENTS' FEES

POINTS TO MAKE

1.

Regret need to raise students' fees. Financial pressures on HMG. No alternative but to cut back on higher education

generally.

2.

Recognise decision creates difficulties for Hong Kong

students. Value academic link. Applaud Hong Kong loan scheme to help deserving cases.

3.

Overseas Students Trust report helpful. Hong Kong Government's cost sharing proposals being examined. Appreciate this and understand Hong Kong's concern. Difficulty is to find extra money needed, but will take Hong Kong's interests fully

into account. Hope HMG will be able to formulate view soon.

CONFIDENTIAL

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