CONFIDENTIAL
-5-
UNITED KINGDOM/HONG KONG AIR SERVICES
15. On 7 November 1980, the Hong Kong Air Transport Licensing
Authority (ATLA) rejected Laker Airways' application to operate
a scheduled service from London to Hong Kong. The decision was
taken on purely air services grounds and in the face of strong
support from the Hong Kong Government for the Laker application.
OVERSEAS STUDENTS
FEES
16. The Government decided in 1979 that it could no longer afford
to subsidise the fees paid by overseas students, other than those
from the European Community. Consequently these students are now
required to pay the full cost of their courses.
This has caused
a good deal of concern in Hong Kong, whose cause has aroused
considerable sympathy in Parliament. Lord Carrington recently
reviewed the position with his Ministers but decided that there
was no point in seeking new money to subsidise students from
Dependent Territories, since it would clearly not be agreed by the
Government. He so informed the Governor by personal telegram on
10 February but this decision has not yet been made public. The
Hong Kong Government are considering possible schemes which
they would finance to help their students.
17. Meanwhile, the Department of Education and Science and other
interested Departments are monitoring the results of the original
decision. Lord Carrington will shortly be writing to the
Prime Minister expressing his concern at the present situation
and explaining the nature of the problem and the wider political
He will suggest the need for a coherent long-term
ramifications.
policy.
/18.
CONFIDENTIAL
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