TNAG-0937-FCO40-1156-Visits-of-Sir-Murray-MacLehose--Governor-of-Hong-Kong--to-th-1980 — Page 48

CONFIDENTIAL

-2-

FUTURE ACTION ON DEPENDENT TERRITORIES

5. Secretary of State, while not optimistic, has agreed that

FCO should seek exemption for Dependent Territories. For 1980/81

this would cost £4.5 million. Treasury strongly opposed to this

exemption. Cabinet Office Paper nowbeing drawn up for Ministers.

FALL-BACK SCHEMES

6.

Without prejudice to our agreement on point of principle need

to consider contingencies;

a) if Ministers agree only to a contribution from UK funds

to a joint scheme with the Hong Kong Government;

b) if no UK funds are agreed at all.

Governor has suggested posible joint Hong Kong / UK loan scheme.

HMG and Dependent Territory Governments would jointly subsidise

first degree sutdents only. In Hong Kong's case this would cost

£1.5 million, to be shared equally between the two Governments.

Hong Kong and General Department

30 October 1980

CONFIDENTIAL