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b)
CONFIDENTIAL
HMG's Contribution to Hong Kong Student Scheme
ESSENTIAL FACTS
In 1983 HMG and HKG agreed
and HKG agreed to establish a scheme
jointly funded by
by the two Governments to subsidise Hong
1.
Kong students in Britain. HMG agreed to provide 50% of the costs of the scheme for 1983-84, up to a maximum of £1.9
million. It was agreed that the commitment for subsequent years would be reviewed in the light of the actual costs in
the year 1983-84, up to a maximum limit of £1.9 million. The Hong Kong Government, for their part, agreed to match
The HKG suggested that the
HMG's contribution and to provide any other funds required
in the form of a loan.
arrangements be reviewed after 5 years.
2.
The UK contribution in 1984/85 and 1985/86 amounted
to £2 million and provision will continue at
will continue at that level in
1986/87. However, expenditure in 1984/85 and 1985/86 was only £1.67 million and £1.51 million respectively. This
underspending was the result of several factors, with probably the most significant being the rigorous means test
applied by the Hong
the Hong Kong Government which depresses the
level of awards in UK terms. Unfortunately, because the
adjudication of awards in Hong Kong is not completed until
January, there is insufficient time left in the Financial
Year for
for CRD to use the savings elsewhere. The money is,
therefore, effectively lost. CRD are presently engaged in preparing estimates for expenditure in 1987. We have of course assumed that the UK/Hong Kong shared funding scheme
should continue in 1987/88, but there is considerable
pressure on the money available for the programme of student support and we may have to reduce the sum allocated to this scheme from the present level of £2 million. The
current proposal by CRD is that in 1987/88 the UK
contribution to the scheme should be £1.65 million.
CONFIDENTIAL
/3.