1-
UNCLASSIFIED
FM FCO
TO ROUTINE HONG KONG
TELNO 2529
OF 19094OZ DECEMBER 89
INFO ROUTINE BTC HONG KONG
UNCLASSIFIED
Rea
P. PHICO 286/1
RECEIVE
DY
23 JAN 1990
DESK OFFICEF INDEX
135615 MDLOAN 9980
REGISTRY
PA
Action Taken
YOUR TELNO 361U: UK-HK JOINT FUNDING SCHEME
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 PERCENT 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 PERCENT 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
YYYY
ΜΑΙΝ
17
MINIMAL CRD
ADDITIONAL
1
MR Y K SO, STUDENT ADVISER, CHONG KONG GOV OFF LONDON)
NNWW
DISTRIBUTION
18
PAGE
FINANCE DEPARTMENT HKD
1
UNCLASSIFIED