UNCLASSIFIED
ZCZC
UNCLASSIFIED
FM FCO
TO ROUTINE HONG KONG
TELNO
OF 041645ZZ DECEMBER 89
AND TO INFO ROUTINE BTC HONG KONG
YOUR TELNO 3610: UK-HK JOINT FUNDING SCHEME
ROUTINE
1. We confirm that subject to Parliament continuing to vote the
necessary funds, we are ready to continue providing pounds 2 million annually towards the grant element of the joint funding
scheme. We propose that the arrangements should be subject to further review towards the end of a three year period ie. 1992/93. We also propose that the notional home fee rate for
grant purposes for 1990/91 should be pounds 637 ie. pounds 607 for 1989/90 raised by 5%. We would similarly suggest that, roughly in line with increases in the home fee rates in previous
years, the notional rate for subsequent years should also rise by
5% annually.
2. We are pleased to note you will continue to match HMG's
contribution and to meet any excess of eligible assistance over
funds available for grants through interest free loans.
HURD
M J LONG
CRD
210-6285