PCS
286/10
RECEIVED IN REGISTRY
03 DEC 1987
DESK OFFICER INDEX
RR
PA
REGISTRY
Action Taken
CONFIDENTIAL
✓
Kup 3/12.
B.u.
IS. 12.84
12.8.
1112
ungeon
www.61
.
CONFIDENTIAL
FM FCO
TELNO 3149
TO PRIORITY HONG KONG
OF 30180OZ NOVEMBER 87
مد
+
112
Love
(121)
010301
MDLOAN. 4914
please
TOP COPY Q DIST 7
PERSONAL FOR GOVERNOR FROM LORD GLENARTHUR
JOINT FUNDING SCHEME
1.
I AM VERY PLEASED TO BE ABLE TO TELL YOU THAT GEOFFREY HOWE HAS AGREED THAT, IN ACCORDANCE WITH YOUR WISHES AND THOSE EXCO EXPRESSED TO ME, THE UK'S CONTRIBUTION TO THE MEANS TESTED UNSELECTIVE PART OF THE JOINT FUNDING SCHEME (JFS) SHOULD NOT BE REDUCED AS ORIGINALLY PROPOSED: IT WILL THEREFORE REMAIN AT THE PRESENT LEVEL OF PDS STG.2 MILLION FOR THE YEARS 1988/89 AND 1989/90. THIS WOULD OF COURSE BE MATCHED BY AN EQUAL CONTRIBUTION FROM THE
HONG KONG GOVERNMENT, TOGETHER WITH A COMMITMENT BY THE HONG KONG GOVERNMENT TO MAKE UP ANY SHORTFALL BY LOANS TO STUDENTS. NEARER THE TIME WE SHALL NEED TO REVIEW THE POSITION ON ARRANGEMENTS FOR *POST 1989/90.
2.
OUR CONTRIBUTION TO THE SCHOLARSHIP ELEMENT OF THE SCHEME WILL BE UP TO PDS STG.125,000 (40,000 UNDER THE EXISTING BRITISH COUNCIL SCHOLARSHIP SCHEME, LESS ANY CARRY OVER COMMITMENT, AND UP TO ?85,000 FROM THE SIR SHIU-KIN TANG BEQUEST) BOTH 1988/89 AND 1989/90. AGAIN, WE WOULD OF COURSE BE LOOKING TO THE HONG KONG
? GOVERNMENT FOR AN EQUAL CONTRIBUTION.
/
one
3. AS YOU KNOW IT WOULD HAVE BEEN CONSISTENT WITH THE GOVERNMENT'S GENERAL POLICY ON SCHOLARSHIPS FOR OVERSEAS STUDENTS TO HAVE MADE THE SCHEME A MORE TARGETTED AND TO MOVE GRADUALLY TOWARDS A SYSTEM OF SELECTION ON MERIT: AND THERE IS A STRONG
BODY OF OPINION IN THE OFFICE WHICH HOLDS THAT THIS WOULD HAVE
BEEN THE RIGHT COURSE. THE DECISION TO TREAT HONG KONG AS A
SPECIAL CASE WAS NOT AN EASY ONE.
4.
YOU SHOULD BE AWARE THAT BOTH GEOFFREY HOWE AND TIM EGGAR
HAVE EXPRESSED CONCERN ABOUT THE UNDERSPENDS THAT HAVE OCCURRED
EVERY YEAR SINCE THE INTRODUCTION OF THE SCHEME IN 1983. THIS UNDERLINES THE NEED FOR THE SCHEME TO BE WELL ADMINISTERED, ALTHOUGHT I UNDERSTAND THAT IN 1987/88 THE FUNDS AVAILABLE UNDER
THE SCHEME WILL FOR THE FIRST TIME BE INSUFFICIENT TO MEET THE
DEMAND AND THAT THE HONG KONG GOVERNMENT WILL HAVE TO MAKE UP THE
SHORTFALL BY LOANS. I WOULD WELCOME ANY VIEWS YOU MAY HAVE ABOUT
HOW THE ADMINISTRATION OF THE SCHEME COULD BE IMPROVED.
5. YOU SHOULD ALSO KNOW THAT GEOFFREY HOWE HAS EMPHASISED THAT
OUR POLICY ON THE JOINT FUNDING SCHEME SHOULD BE STRICTLY RING
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CONFIDENTIAL