CONFIDENTIAL

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(4)

Copy No3. 3.7. Schdarbin

Shem

lisas

(1984 was HID

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Reg

For decision

on 23 January 1990

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RECEIVED IN REGISTRY

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MEMORANDUM FOR EXECUTIVE COUNCIL

JOINT FUNDING SCHEME FOR HONG KONG STUDENTS IN BRITAIN Action Takan

THE PROBLEM

A review

Pa pls.

of the Joint Funding Scheme (JFS) is required as a result of the recent decision by HMG to increase the 'home' tuition fee from £607 to £1,675 per annum with effect from 1990-91.

RECOMMENDATION AND ADVICE SOUGHT

2

It is recommended that

-

subject

(a)

(b)

(c)

(d)

to

the JFS should adopt a notional 'home' fee for the purpose of calculating student grants with effect from 1990-91;

the notional 'home' fee should be based on the 1989-90 'home' fee level of £607 p.a. but adjusted by 5% annually for inflation;

interest at 2.5% p.a. should be charged on all loans given under the JFS with effect from 1990-91; and;

the operation of the JFS should be reviewed in 1992-93,

the acceptance of the financial implications involved by the Finance Committee of the Legislative Council.

3

Members will be asked to recommendation should be approved.

î

advise whether this

BACKGROUND AND ARGUMENT

Origins of the JFS

4

The JFS

was established in

1983, following HMG's

decision to apply 'overseas' fees, which are based on full cost, to Hong Kong students. The JFS is intended to cover the difference between the

and 'overseas' fees through a

'home'

CONFIDENTIAL

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