TNAG-1373-FCO40-1819-Ministerial-visits-from-the-UK-to-Hong-Kong-1985 — Page 113

HK1AFG

BACKGROUND

1.

to remove the subsidy from

students aroused considerable

aggravated by the fact

the French Overseas

In 1979 HMG's decision

tuition fees for overseas

feeling in Hong Kong. This

that students from the

territories and Gibraltar,

Home Students.

2.

was

EC,

continued

to

to be classified as

establish a scheme

In 1983 HMG and HKG agreed

jointly funded by the two Governments to subsidise Hong

Kogg students in Britain. Whilst HMG accepted the

principle of a joint funded scheme for Hong Kong

students it was unable to commit itself to equal funding

by the two Governments because of limited funds and the

open-endedness involved. We eventually agreed to provide

50% of the costs of the scheme, which involves means

testing, for 1983-84, up to a maximum

million.

limit of £1.9

commitment for

the light

light of the

The Hong Kong

I t was agreed that the

subsequent years would be reviewed in

actual costs in the year 1983-84.

Government, for their part, agreed to match HMG's contribution and to provide any other funds required in

the form of a loan. The Hong Kong Government suggested, and HMG agreed, that the arrangements be reviewed after 5 years as it was thought that by 1987 the number of places

available at

universities in Hong Kong would have

increased significantly.

3.

HMG's

million, the

announcement

to

£1.27

expenditure in 1983-84 amounted underspending being due to both the late the scheme and the rigorous means testing applied by the Hong Kong Government. For 1984-85 HMG's contribution will amount to £1.65 million, the original

been £2.4 million having

revised in the provision

of

light of actual spending in the first year of the scheme.

HMG's

contribution

for

1985/86 has

been set at £2