2

!

3.

scheme

There would be a particular sensitivity about a

involving the United Kingdom only, given that there were no joint funding schemes with other countries in place, and none was in prospect. A further difficulty was that the JFS, unlike the UK/HK Scholarship Scheme, did not select students on merit or oblige them to return to work in Hong Kong upon completion of their studies.

4 -

Taking these factors into account, the Executive Council concluded that the best solution would be for the JFS to be phased out by 1996-97, on the basis set out in the first paragraph of this letter. I should be very grateful if, to help ensure continuity of planning, you would confirm the FCO's continuing funding commitment to the JFS, albeit on the tapering basis described, until 1996-97. It was ExCo's strong wish,

and certainly very much that of the Governor personally, that the

Scheme should be allowed to continue up to the final year of the transitional period.

5.

ExCo also asked that the UK Government's agreement should be sought to diverting the savings which would result from the proposed decline in its contribution to the JFS, to funding improvements in the UK/HK Scholarship Scheme. The Council considered that this would be a very effective alternative use of UK funds. The enhanced Scholarship Scheme would ensure that highly valued links with the UK were maintained and that assistance would be given to some of Hong Kong's best students.

6.

use

We have deferred our announcement of the Executive Council's decision on the JFS until we have your views on this suggested alternative

of the UK Government's contribution. I should be most grateful for your reaction at Once we are agreed on the way forward, we would be happy to clear with you the text of a press statement announcing the future arrangements.

your earliest convenience.

or ever,

Jomi

(John Chan)

Secretary for Education and Manpower

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