each year from the Foreign and Commonwealth Scholarships Awards Scheme (FCOSAS); anỳ necessary annual balance of the UK's share of costs will continue to be a charge on
the up to two thirds of the interest (accrued and current) from the late Sir Shiu-kin Tang's Bequest;
(iv) of the options presented for increased funding of the Scheme (to enable the 9 new awards to be made annually up to 1996/97) we should prefer the option at Appendix II in the enclosure to your letter, whereby the necessary funds are drawn down annually from the Bequest interest on the basis of each year's actual scholarships costs. All of the additional costs attributable to the UK side will need to be contained within the existing sources of finance, ie the E40,000 annually from FCOSAS and the up to two-thirds of the interest (that is both accrued and current) Bequest.
According to our understanding of the enclosures to your letter the additional contribution required from the FCO (over and above the continuing £40,000 annually from FCOSAS, and the current approximately £85,000 contribution annually from the Bequest interest) until 1996/97 is a total of £408,850 (as set out in Section 10 of the enclosure ie one half of the figures which also appear in column 4 of Appendix II). We have noted the reference at (3) of Appendix IV to a figure of £708,000 as being the accrued interest on the El million Bequest at 1 September 1991. We assume that this represents the total accrued/current interest - not just the two-thirds available for scholarships purposes. If two-thirds amounts to £472,000 this should satisfactorily cover the total £408,850 addition that is required from the UK.
assume
An agreement on the foregoing basis would we
We shall adequately cover the next 5 years up to 1996/7. need more time to look at the arrangements for the operation
For and placing of the Bequest up to and beyond that date. that reason we should prefer to delay confirming any arrangements for the Scheme beyond 1996/97. Perhaps we could agree to make some further joint review of our Scheme at say 1994/95? (but perhaps I might raise the point now that if the Scheme should continue after 1997 the foregoing calculations would seem to mean that the bulk of the
so far accrued interest from the Bequest would probably be exhausted by 1996/97. Have you made any projections on this aspect?).
I hope this is helpful to the Committee's further deliberations. Do let me know if there are any other points we should consider.
CHOABZ