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RESTRICTED

SIR Y K PAO'S CHEVENING WEEKEND, 15-16 MARCH 1986

IV

SIR Y K PAO'S SCHOLARSHIP FUND

Points to Make

1.

Delighted with progress towards working out details of

your scholarship scheme: useful discussions with Mr Pan and

with Chinese authorities. Remains high priority to attract

more Chinese students to Britain. Your scheme can make a

major contribution. Imaginative, generous and welcome.

2.

Hope implementation can begin soon and that y ou can

agree to proceed on

on basis of paper given to Mr Pan. Draws

on considerable ODA and British Council experience of

managing Chinese student schemes. Believe it provides best

way forward. Particularly hope

y ou

can agree to early

between UK and Chinese

technical discussions in London

specialists and your representatives.

3.

Your understanding of Chinese position?

Defensive Points

Why not capital sum?

4.

annual

Precluded by our system of government financing.

contribution we

the same spending power.

But

envisage would give scheme roughly

Early discussions difficult: wish to be present my self

5.

to

We envisage discussions at expert level, reporting

y ou

and to British and Chinese Ministers. Inevitable long

lead time in setting up any Chinese scholarship scheme even

after details agreed (our experience indicates up to 18

months). Believe Chinese would welcome early discussions.

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