TNAG-1467-FCO40-1994-Visits-by-Sir-Edward-Youde--Governor-of-Hong-Kong--to-the-UK-1986 — Page 76

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b)

CONFIDENTIAL

HMG's Contribution to Hong Kong Student Scheme

ESSENTIAL FACTS

In 1983 HMG and HKG agreed

and HKG agreed to establish a scheme

jointly funded by

by the two Governments to subsidise Hong

1.

Kong students in Britain. HMG agreed to provide 50% of the costs of the scheme for 1983-84, up to a maximum of £1.9

million. It was agreed that the commitment for subsequent years would be reviewed in the light of the actual costs in

the year 1983-84, up to a maximum limit of £1.9 million. The Hong Kong Government, for their part, agreed to match

The HKG suggested that the

HMG's contribution and to provide any other funds required

in the form of a loan.

arrangements be reviewed after 5 years.

2.

The UK contribution in 1984/85 and 1985/86 amounted

to £2 million and provision will continue at

will continue at that level in

1986/87. However, expenditure in 1984/85 and 1985/86 was only £1.67 million and £1.51 million respectively. This

underspending was the result of several factors, with probably the most significant being the rigorous means test

applied by the Hong

the Hong Kong Government which depresses the

level of awards in UK terms. Unfortunately, because the

adjudication of awards in Hong Kong is not completed until

January, there is insufficient time left in the Financial

Year for

for CRD to use the savings elsewhere. The money is,

therefore, effectively lost. CRD are presently engaged in preparing estimates for expenditure in 1987. We have of course assumed that the UK/Hong Kong shared funding scheme

should continue in 1987/88, but there is considerable

pressure on the money available for the programme of student support and we may have to reduce the sum allocated to this scheme from the present level of £2 million. The

current proposal by CRD is that in 1987/88 the UK

contribution to the scheme should be £1.65 million.

CONFIDENTIAL

/3.