CONFIDENTIAL

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6.

According to a BBC report a week or so ago,

one of the possible features in the proposals for financing tertiary education in UK by replacing most of the grants by student loans, is that Universities will determine whether a student is to be charged "Home fees" or "Overseas fees". Most students, as now, would be charged "Home fees" but Universities will not use the present criteria to decide which students will be charged "Home fees" [no doubt these terminologies will be replaced]. Academic excellence, industry, and character will be the relevant factors. Whether this will lead to an unedifying struggle among Universities for the best students of the HKU vs CU sort will depend on measures taken to avoid them.

7.

The UK weeklies have not commented on this proposal and it may be worthwhile for the D of E to monitor progress. If the scheme develops along the line of the radio report then Macau Portuguese nationals' only advantage over our students would be accessability to loans to be repaid when they start earning an income. Local banks in today's circumstances would be forthcoming in providing similar loans. Our students have better academic preparation and are more devoted to school work so that they would do far better on assessments for "Home students" fees.

8.

On the other hand the scheme may end up or indeed may have already moved into something quite different. The information would still be, for our purposes, of interest.

9.

As I have been dealing with a subject about which I know very little, I would appreciate it if the D of E would put right factual errors on such matters as fees and grants, statutory or otherwise.

:

Thane Ketche

KUO Ket-chen

for Director of Immigration

c.c.

S

DPA

GD

D of E

Senior British Trade Commissioner

KKC/gs

CONFIDENTIAL

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