CONFIDENTIAL
год
DESK OFFICER
HKB 286 | 1
RECEIVED IN REGISTRY
20FEB 1990
REGISTRY
त
ĥlo to
e
pls.
PA
ction Taken
CONFIDENTIAL
FM HONG KONG
TO PRIORITY FCO
TELNO 333
OF 250945Z JANUARY 90 INDEX
INFO ROUTINE HKGO LONDON
051760
MDLIAN 3127
१
STONE
received
2012
257
GF.
89 HKD 286/1:(57
UK/HK JOINT FUNDING SCHEME
YOUR TELNO. 2529.
attarched
For ref
2.
THE UK/HK JOINT FUNDING SCHEME WAS CONSIDERED BY THE EXECUTIVE COUNCIL ON 23 JANUARY. WHILE THE USE OF A NOTIONAL HOME FEE RATE FOR GRANT ASSESSMENT PURPOSE WAS WELL RECEIVED, MEMBERS WERE CONCERNED THAT, AS A PROPORTION OF THE TOTAL ASSISTANCE, THE GRANT ELEMENT HAD DROPPED FROM 97 PER CENT IN 1987-88 TO 75 PER CENT IN 1989-90 AND WAS PROJECTED TO DECLINE EVEN FURTHER DUE TO INFLATION AND INCREASED NUMBERS ASSISTED.
3.
THE ORIGINAL OBJECTIVE OF THE SCHEME WAS TO CEMENT TIES BETWEEN UK AND HONG KONG AND GENERALLY PROJECT TO HONG KONG STUDENTS A POSITIVE IMAGE OF UK. THIS IS LIKELY TO BE ERODED AS THE AMOUNT OF GRANT AVAILABLE TO EACH STUDENT DECREASES AND THE LOAN ELEMENT PREDOMINATES. DESPITE BEING BRIEFED ON THE SENTIMENTS EXPRESSED IN PARA 3 OF YOUR TELNO 3149 OF 1987, MEMBERS STRONGLY URGED THAT THE GRANT PROVIDED BY HMG BE INCREASED, AT LEAST, TO TAKE ACCOUNT OF INFLATION.
4 =
WE WOULD BE GRATEFUL TO KNOW IF THE TWO MILLION POUNDS CONTRIBUTION FROM HMG COULD BE INCREASED TO ACCOMMODATE MEMBERS' REQUEST. WE WILL, OF COURSE, MATCH ANY UPWARD ADJUSTMENT YOU ARE PREPARED TO AGREE.
WILSON
YYYY
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