HK1AFG

BACKGROUND

1.

In 1979 HMG's decision

tuition fees for overseas

to remove the subsidy from

students aroused considerable

was aggravated by

by the fact

EC, the French overseas

continued to be classified as

feeling in Hong Kong. This

that students from the

territories and Gibraltar,

Home Students.

:

2.

and HKG agreed

to

establish a scheme

the two Governments

to subsidise Hong

Britain.

Whilst HMG accepted the

In 1983 HMG

jointly funded by

Kogg students in

principle of a joint funded scheme for Hong Kong unable to commit itself to equal funding

students, it was

costs of the

commitment for

the light of the

The Hong Kong

by the two Governments because of limited funds and the open-endedness involved. We eventually agreed to provide

50% of the

scheme, which involves means

testing, for 1983-84, up to a maximum limit of £1.9

million.

It was agreed that the

subsequent years would

years would be reviewed in

actual costs in the year 1983-84.

Government, for their part, agreed to match HMG's

contribution and to provide any other

other funds required in

the form of a loan. The Hong Kong Government suggested,

and HMG agreed, that the arrangements be reviewed after 5 years as it was thought that by 1987 the number of places

available at universities in Hong Kong would have

increased significantly.

3.

HMG's

expenditure

in 1983-84 amounted to £1.27

million, the underspending being due to both the late

announcement of the scheme and the rigorous means testing applied by the Hong Kong Government. For 1984-85 HMG's contribution will amount to £1.65 million, the original

provision of £2.4 million having been revised in the light of actual spending in the first year of the scheme.

HMG's contribution for 1985/86 has been set at £2

$

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