FCOABQ
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VISIT TO HONG KONG BY LORD GLENARTHUR, 16-19 SEPTEMBER
BRIEF NO 13: JOINT FUNDING SCHEME (JFS) FOR HONG KONG STUDENTS
Background
1.
The JFS was set up in 1983, in response to a Hong Kong Government proposal. Resources were initially provided by the British and Hong Kong Government on a 50:50 basis. Both governments agreed that a review shold take place after 5 years, in 1987/88. Since 1985 the UK contribution has been limited to £2 million per annum. It was agreed that any shortfall in the scheme would be made up by HKG loans to individual applicants.
2.
Ministers wish to change the emphasis of the Scheme, in line with overall policy on support for overseas students, from one that merely supports students in financial need to one supporting, by scholarships, students with academic merit and other personal qualities. They intend that this should be done by reducing our financial contribution to the JFS by £50,000 and £75,000 in 1988/89 and 1989/90 respectively, and switching this sum to a new scheme providing scholarship places. To this would be added a sum of £125,000 from the FCO Scholarships and Awards Scheme and a private
No final bequest: and, we hope, an equivalent sum from the HKG. decisions have been taken on how the two schemes should evolve thereafter: but there is a clear implication that, if all was proceeding well in 1990, we should prefer to continue increasing scholarship places and reducing our cash contribution to the Joint Funding Scheme.
3.
The Hong Kong Government have expressed reluctance to change the present scheme. They fear this could reinforce suspicion in Hong Kong that HMG is reneging on its commitment to the Territory. However, on the basis that our overall level of funding would increase under the new schemes, and since there will for the first time need in any event to be a loan element in the JFS this year
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