Reference...............................................................................................................................

CODE 18-77

(v)

(v)

(vi)

(v)

(c)

elsewhere in the world.

Copy to RMD?

Is it really the case that as 1997 approaches (and thereafter), Hong Kong will in political and other terms continue to merit scholarships provision of something like the current £2.24m (excluding SK Tang)? Should we not be looking to reduce fairly drastically this provision and redeploying to more current political priorities elsewhere, eg Eastern/Central Europe, major countries in Pacific Rim, Southern Africa, etc? Do we really need another bursary/scholarship scheme for Hong Kong or if we do, can it not be funded from elsewhere than CRD scholarships budget?

given that Hong Kong is continuing to benefit from UK/HK Scholarships which is a targeted scheme (albeit administered by an outside Committee and not directly by the FCO) should we not stick at that and at least redeploy all of any UK/HK Joint Funding reductions elsewhere?

Should we also now be concerting a view on the future of UK/HK Scholarships? What are the terms of the Sir S K Tang Bequest? Shall we have /want to continue deploying the 2/3rds of the Bequest interest to this scheme or even to Hong Kong after 1997? Would we be able actually to use the money for projects outside Hong Kong? As you know I have separately already agreed with the HK Education and Manpower Dept that there will be a joint to review of this scheme in 1994/95. See also para.4 below.

Whatever scholarships programme is to be implemented close to, and certainly after 1997 should Peking/FED (who will presumably be responsible overall for scholarships and other provision for Hong Kong as part of Mainland China) be brought into the picture now and perhaps offer advice/recommendations on the territory's status/importance in terms of FCO scholarships priority?

Copy to FED?

As a

3. In the light of these considerations and of the apparent declining interest in Hong Kong in the fee support programme, CRD's inclination would be to recommend that we actually start the run down in 1993/94 (Year 1). first step it would be helpful if we could make a marginal cut by taking away the £0.2 million (which was only added in 1991/92). In 1994/95 (Year 2) and 1995/96 (Year 3) we should then only agree to fund students continuing from earlier years. Our final payment would then be made in 1995/96. We should need to get fairly quickly from Hong Kong their best calculations of the precise resources/students to be supported (and projected savings) during the run down period. All of the saved resources would be available for redeployment for targetted FCOSAS awards outside Hong Kong in accordance with whatever are the then current FCO political and other priorities.

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