TNAG-1148-FCO40-1428-Effect-on-Hong-Kong-of-the-Portuguese-and-Spanish-accession--1982 — Page 56

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00 HONG KONG DESKBY 0801002

GRS 255

CONFIDENTIAL

DESKBY 080100Z

FM FCO 071045Z JAN 82

TO IMMEDIATE HONG KONG

TELEGRAM NUMBER 007 OF 7 JANUARY

AND TO IMMEDIATE PEKING (FOR DONALD)

FOR GOVERNOR FROM CLIFT

FROM

YOUR TELNO 9 OF 5 JANUARY

No

190

"1/1

1. POSITION ON MACAO IS STILL AS STATED IN OUR TELNO 374 OF 13

APRIL. SUGGEST, IF ASKED, LPS TAKE SIMILAR LINE TO SECRETARY OF

STATE'S IN APRIL THAT 'THERE IS NO SIGN THAT THE PORTUGUESE WILL

ASK FOR SPECIAL STATUS FOR MACAO VIS-A-VIS THE EC. IF THEY DO WE

WILL WORK TO ENSURE THAT MACAO IS TREATED SIMILARLY TO HONG KONG'

AND, IF PRESSED, 'WE FULLY TAKE POINT THAT ANY ADVANTAGE FOR MACAO

WOULD BE UNACCEPTABLE'.

2. ON STUDENTS' FEES, HKGO CONFIRM YOUR UNDERSTANDING OF POSITION.

HONG KONG PREFERRED STUDENT LOAN SCHEME TO CHANNEL ISLANDS SCHEME

TENTATIVELY SUGGESTED BY US BECAUSE:

A) CHANNEL ISLANDS PER CAPITA SYSTEM WOULD ENTAIL OPEN-ENDED

COMMITMENT, MEANS-TESTING DIFFICULTIES AND PRESENTATIONAL PROBLEMS

OF DIRECT PAYMENT TO DES.

B)

THE HONG KONG GOVERNMENT WERE UNDER PRESSURE TO INTRODUCE THE

SCHEME BY START OF SUMMER TERM 1981.

4. LUMP SUM PROPOSAL WAS NOT FAVOURED BY US BECAUSE IT WOULD BE

HARD TO JUSTIFY A SCHEME WHICH DID NOT TAKE NUMBERS AND CIRCUM-

STANCES OF INDIVIDUAL STUDENTS INTO ACCOUNT.

5.

SUBJECT TO YOUR VIEWS, SUGGEST FOLLOWING DEFENSIVE LINE FOR

LPS: 1 OFFER OF PAYMENT IN RETURN FOR HOME STUDENT STATUS WAS NOT

PURSUED SINCE IT WAS SUPERSEDED BY PRESENT LOAN SCHEME. (IF PRESSED): THE OFFER WAS MUCH APPRECIATED BUT IT WOULD HAVE BEEN VERY DIFFICULT TO ADMINISTER A LUMP SUM PAYMENT THROUGH THE BRITISH GRANTS SYSTEM.'

CARRINGTON

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DISTRIBUTION

LIMITED

HKAND GD

ECD(E)

FED

PS/LPS

X

COPIES TO:

HK GOVT OFFICE LONDON

CONFIDENTIAL