TNAG-1224-FCO40-1537-Visits-to-the-UK-by-official-and-unofficial-members-of-the-E-1983 — Page 126

CONFIDENTIAL

5.

Governor's concern is that rejected applicants should

not feel that the door has been closed for ever. We shall

ensure that they are not disqualified from reapplying at some

future time when their circumstances may have changed, but the

decision will still rest entirely with the Home Secretary, and

Home Office views on immigration from Hong Kong are unlikely to

change. We must therefore ensure that unsuccessful applicants

are not encouraged to entertain unfounded hopes of better luck with a future application.

Hong Kong Government's public line is that it is premature to speculate about these questions while talks are

going on in Peking. Most Civil Service Unions, and senior police management, have agreed with this.

B

OVERSEAS STUDENTS' FEES

7.

Hong Kong is the principal beneficiary of the new

arrangments for overseas students for 1983/4, as part of the

overall package announced by the Secretary of State on

8 February 1983. It is anticipated spending up to £1.9 million

on the Hong Kong scheme, out of the £5 million provided for

1983/4 (from the FCO total three year package of £25 million).

Hong Kong will also benefit under the expanded Commonwealth

Scholarship and Fellowship Plan.

8.

Goodwill arising from this was slightly upset by HMG's

predicted reversal of the House of Lords judgement on "ordinary

residence". (This entitled overseas students to mandatory

awards and home rates of fees.) Lost fee income alone could have

cost the British taxpayer £30 million a year. Administrative

and legislative measures correcting this unintended windfall are at present being introduced. A guidance telegram on the subject

is attached.

A

9.

Sir S Y Chung wrote to the Governor of Hong Kong on

9 April about this, expressing UMELCO's displeasure at the

decision. The Governor agreed to pass their views on to HMG.

CONFIDENTIAL