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Sir Y K Pao pressed strongly for HMG to cover these separately.

Sir Y K telexed the Prime Minister and the Secretary of State

and the Prime Minister replied confirming that we will do so.

This will allow the scheme to finance around 350, rather than

300, awards each year.

5 More generally, we have been working vigorously for some

time to increase the number of Chinese students in Britain.

There are currently some 1400 (of whom just under half receive support from HMG), compared with around 800 in 1984/85. The primary channel is ODA. But China is also the greatest beneficiary

under the FCO SAS scheme (currently 58 awards).

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