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proposed?

You say that participants from Hong Kong, South China

and eventually Taiwan will be attending the Centre.

Do you envisage that students from places other than Hong Kong will benefit from an HMG scholarship

programme? My own view is that we should not dilute the range and scope for Hong Kong scholarships in

favour of candidates who may already have access to

existing FCOSAS programmes in China, and Taiwan?

James Smith-Laittan says in his letter that without

HMG's support there is reason to suppose that the nature of the training provided by the MTC is likely

to change over time in a way which dilutes or even

removes its value to Britain. We do not really follow

this. How could the presence or absence of our

support for graduates from the Centre affect the way

the Centre itself operates? If the British Council

are to administer the centre, and British Universities

provide the curriculum, is that not sufficient guarantee of the British link?

James Smith-Laittan's letter mentioned (perhaps not as

ominously as it read!) that the Hong Kong Government had

sought "certain assurances on the financial feasibility of the project". It is certainly not realistic to think of

our scholarship budget as a major contribution to the survival of this project. To put it more bluntly, we may be able to piggy-back on it, but are unlikely to make more

than a marginal difference to its viability. On capital

costs, it would be useful to know how much of a real

problem funding for bricks and mortar is for the British

Council. As you discussed with Peter Ricketts it is not

possible for us to use scholarship funds (revenue) for

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