HITD 2260/co

RECEIVED

PEGISTRY

14 APR 1987

GITARY

Action Taken

Me

15/4

Securian

Private Secretary State

Marka Au Thomas

ARD

Thanks

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From:

08 APR 1987

180

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A M Layden, HKD

Date: 6 April 1987

Copies to PS/Mr Eggar

Ms Falconer, CRD

HONG KONG: THE SIR EDWARD YOUDE FUND AND THE JOINT

FUNDING SCHEME

1. The Secretary of State has asked about the present position on the Sir Edward Youde Fund and how some of the fund's finances might be used in conjunction with the proposed changes to the Joint Funding Scheme for Hong Kong students studying in the UK.

2. The Sir Edward Youde Memorial Fund Ordinance was enacted on 11 March and came into effect on 1 April. Some HK$77 million (about £6.5 million) has so far been donated to the fund which is to be used to cover the furtherance of education, learning or research locally or overseas for the people of Hong Kong. A council, comprising a Chairman (Sir S Y Chung) and six members have been appointed to administer the Fund. has also agreed to sit on the Council.

Lady Youde

3. The proposed changes for the expansion of the Joint Funding Scheme would allow for an increase in the current overall provision of £4 million by £125,000 each from Britain and Hong Kong; and for the widening of the eligibility criteria (presently limited to financial need) to include an element for academic merit and personal qualities. The increased resources would come from, on the British side, the FCO scholarships and Awards Scheme and the Sir S K Tang gift (a recent donation to HMG for purposes of assisting Hong Kong students); and on the Hong Kong side, money from the Sir Edward Youde Fund and/or Hong Kong Government funds would be used.

4. In addition, we envisage that an element of our current contribution to the JFS (based purely on financial need) might also be transferred to that part of the expanded JFS to be available for those qualifying on grounds of merit. If HKG accept this concept (and they are currently reviewing the position prior to the new Governor's arrival), the total amount which we envisage would be earmarked for the selective scholarships would be £350,000 in the first year of the expanded scheme, rising to £500,000 in the second year. The position

/thereafter

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