PERSONAL

HAB 285/1

Foreign & Commonwealth

Office

Как

Va

3/17,

BY FAX

2 December

Martin Dinham Esq Government House

Hong Kong

Near Martin

SCHOLARSHIPS: FCO CONTRIBUTION

London SWIA 2AH

80H

Telephone: 071-

We have been asked by our Cultural Relations Department about an article in ECS Marketing News which suggested that Hong Kong are considering withdrawing their share of the Joint UK/HK Scholarship Scheme (which offsets the difference between home fees and overseas fees). James Smith-Laittan, BTC, tells us that the matter is indeed under consideration in Hong Kong but that no decision has yet been reached.

James Smith-Laittan understood that Hong Kong are considering withdrawing their share of funding on the existing scheme with the idea that the FCO may transfer their contribution of £2.2 million to a scholarship fund for Hong Kong. In case decisions are imminent on this, I thought you should be aware of the exceptional pressure on FCO budgets over the next three years as a result of the PES settlement. I enclose, to illustrate this, a copy of Christopher Hum's letter to North-Asian posts foreshadowing cuts in resources.

Against that background, there can be no guarantee that our present level of funding for scholarship can be maintained, or that savings from the UK/HK Joint Funding Scheme would go to Hong Kong, ( Hong Kong is presently the largest recipient of FCO Scholarship resources).

We attach importance to maintaining a good standard of English in Hong Kong for economic and political reasons. if it looks as if Hong Kong does not think this scheme is worth co-funding, we in HKD would be hard put to argue the case for preserving FCO funding against other compelling claims on very limited funds.

Perhaps you could let us know how matters stand so that we can decide how best to play our hand in the discussions underway here on dividing up our scholarship funding.

Ye

PF Ricketts

ever

f

Peter

Hong Kong Department

But

SKTANG/dinham

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