TNAG-1005-FCO40-1254-Capital-punishment-in-Hong-Kong-1981 — Page 65

CONFIDENTIAL

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b) If not, whether different treatment could be justified

on grounds of lack of democracy in Hong Kong;

c) If that is not on, the problems involved in reapplication

of Creech Jones to Hong Kong.

G

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OVERSEAS STUDENTS FEES

9. Sir S Y Chung raised this matter with Mr Ridley on 28 July.

HMG's decision to charge full cost fees for overseas students will

save the UK £90 million per year. Exemptions had to be made for

EC students because of EC regulations; it would be too costly to

extend these exemptions to cover Dependent Territories.

One result of

the increase has been the continuing drop in the number of Hong Kong

students coming to the UK to study: for the first half of 1981 it was

70% lower than for the first half of 1980. The number of students goin

to Canada rose by 44% over the same period.

10.

The Department of Education and Science (DES) is monitoring the

consequences of the increase, but there is little prospect of a

change in policy. HMG is, however, doing what it can to mitigate

the effects through the DES bursary scheme for postgraduates, through

fee-support schemes and through scholarships. The Overseas Students'

Trust, an independently-funded body, have embarked on further work,

with our encouragement and cooperation, to produce a range of options

on the best use of available resources in this field in line with the

basic interests of the UK. This is expected to be ready by next

Spring.

11.

The Hong Kong Government, while continuing to oppose the fees

increase, has started its own interest-free loan scheme to help

needy students on first-degree or equivalent courses in the UK.

CONFIDENTIAL

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