CO129-596-4 Hong Kong University- Apprenticeship scheme 4-2-1947 - 3-9-1947 — Page 59

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1946, and are being paid from Hong Kong funds.

It is now proposed

to award scholarships to the second batch of five apprentice students and the Governor has requested that the cost should be met from a free grant under the Act.

6.

An application for the full amount of the expenditure requirod for five such scholarships cannot be made until the studenta have been placed with engineering firms, since the wages paid by different firms very.

It is proposed, however, that each scholarship shall provide for the monthly payment of an amount representing the difference between a standard allowance of £30 a month and the actual earnings for each month, calculated on the basis of 4.1/3rd weeks to a calendar month (F.B.I. practice) such payment to begin on the date of arrival and to continue until date of departure at the conclusion of the apprenticeship. The advice of the inland revenue authorities is being sought as to exemption of such a payment from United Kingdon income tax. If the Inland Revenue Beek that the standard allowance must be regarded as liable to United Kingåan Income Tax, it will be necessary to consider raising the allowance to take this factor into account. The figure of £30 per mensura is an increase a that given in Colonial Office letter 53611/12/44 of 2nd December, 1944, to take account of the rising cost of living in this country, and to bring the Hong Kong students into line with the Chinese students financed by the Chinese Government.

7.

Until this question is settled, end the students have actually been placed with firms in this country it is not possible to calculate the assistance which will be required. Application is therefore made in the first instance for an interim grant' to cover the cost of passages and outfit allowances for the five engineering graduates, and incidental expenses including

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maintenance for the first few weeks on the basis that the full £30 per mens will be payable for this period. A further application will be prepared as soon as possible.

Colonial Office, 14th May, 1947

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