RESTRICTED
Council do not propose to make a full financial appraisal of the project until the level of HMG's contribution is agreed in principle. I am not sure this is the right way around. We clearly cannot commit ourselves to a project which is still an unknown quantity. We still have too few details on the nature of the MTC, how it will be run and the benefits to be secured by HMG, were we to make a financial commitment. The attached draft addresses these issues in more detail.
Proposed HMG Contribution to Management Training Centre Scholarship Scheme: £250,000, 1996/7
The British Council have proposed that we should fund a scholarship scheme for MTC graduates to study in the UK costing £250,000 per annum from 1996/7. You will recall that, in securing Mr Goodlad's agreement to the phasing-out of the Joint Funding Scheme it was agreed with CRD that we would retain £0.5 million for Hong Kong scholarships in 1996/7 and beyond. Mr Goodlad approved the use of one part for an FCOSAS programme and the rest for a separate scheme matched by funds from the private sector (both schemes to commence in 1996/7). discussed with Mr Ricketts and Mr Morris the possibility of funding a UK scholarship scheme for MTC graduates from our available resources, and we are not convinced that a firm commitment for HMG to fund would be right at this stage. The problems we foresee are outlined in the attached draft letter.
Proposed HMG Contribution to the Fit-Out Costs of the Management Training Centre: £250,000, 1995/6
6. The British Council originally proposed that HMG should buy its place on the policy board of the Management Training Centre by making a £250,000 contribution to the fit-out costs of the Centre. Since then, the SBTC has acknowledged that FCOSAS money cannot be used for capital expenditure. However, we need to establish whether the project is likely to be viable without such an investment from us.
Future Scholarship Scheme matched by Private Sector Funds: £250,000, 1996/7
7.
Prompted by Mr Ricketts' letter of 7 June to Hugh Davies (then SBTC) the BTC have been considering a future scholarship scheme involving matching funds from the private sector. They envisage an HMG contribution of £350,000 matched by the private sector to the value of £700,000. At present we have £250,000 allocated for this scheme although Mr Hum has put down a marker in his 1993 TMR return for an extra £100,000 scholarship money in 1996/7. There is however no guarantee that we will get this money. I have reflected this thought in the attached draft letter to the SBTC.
hum.1211.SCHOL.RM
RESTRICTED