TNAG-1981-FCO40-2814-UK-Hong-Kong-Scholarship-Scheme-donation-to-the-UK-Governme-1989 — Page 133

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FM FCO

TELNO 3149

TO PRIORITY HONG KONG

OF 30180OZ NOVEMBER 87

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PERSONAL FOR GOVERNOR FROM LORD GLENARTHUR

JOINT FUNDING SCHEME

1.

I AM VERY PLEASED TO BE ABLE TO TELL YOU THAT GEOFFREY HOWE HAS AGREED THAT, IN ACCORDANCE WITH YOUR WISHES AND THOSE EXCO EXPRESSED TO ME, THE UK'S CONTRIBUTION TO THE MEANS TESTED UNSELECTIVE PART OF THE JOINT FUNDING SCHEME (JFS) SHOULD NOT BE REDUCED AS ORIGINALLY PROPOSED: IT WILL THEREFORE REMAIN AT THE PRESENT LEVEL OF PDS STG.2 MILLION FOR THE YEARS 1988/89 AND 1989/90. THIS WOULD OF COURSE BE MATCHED BY AN EQUAL CONTRIBUTION FROM THE

HONG KONG GOVERNMENT, TOGETHER WITH A COMMITMENT BY THE HONG KONG GOVERNMENT TO MAKE UP ANY SHORTFALL BY LOANS TO STUDENTS. NEARER THE TIME WE SHALL NEED TO REVIEW THE POSITION ON ARRANGEMENTS FOR *POST 1989/90.

2.

OUR CONTRIBUTION TO THE SCHOLARSHIP ELEMENT OF THE SCHEME WILL BE UP TO PDS STG.125,000 (40,000 UNDER THE EXISTING BRITISH COUNCIL SCHOLARSHIP SCHEME, LESS ANY CARRY OVER COMMITMENT, AND UP TO ?85,000 FROM THE SIR SHIU-KIN TANG BEQUEST) BOTH 1988/89 AND 1989/90. AGAIN, WE WOULD OF COURSE BE LOOKING TO THE HONG KONG

? GOVERNMENT FOR AN EQUAL CONTRIBUTION.

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3. AS YOU KNOW IT WOULD HAVE BEEN CONSISTENT WITH THE GOVERNMENT'S GENERAL POLICY ON SCHOLARSHIPS FOR OVERSEAS STUDENTS TO HAVE MADE THE SCHEME A MORE TARGETTED AND TO MOVE GRADUALLY TOWARDS A SYSTEM OF SELECTION ON MERIT: AND THERE IS A STRONG

BODY OF OPINION IN THE OFFICE WHICH HOLDS THAT THIS WOULD HAVE

BEEN THE RIGHT COURSE. THE DECISION TO TREAT HONG KONG AS A

SPECIAL CASE WAS NOT AN EASY ONE.

4.

YOU SHOULD BE AWARE THAT BOTH GEOFFREY HOWE AND TIM EGGAR

HAVE EXPRESSED CONCERN ABOUT THE UNDERSPENDS THAT HAVE OCCURRED

EVERY YEAR SINCE THE INTRODUCTION OF THE SCHEME IN 1983. THIS UNDERLINES THE NEED FOR THE SCHEME TO BE WELL ADMINISTERED, ALTHOUGHT I UNDERSTAND THAT IN 1987/88 THE FUNDS AVAILABLE UNDER

THE SCHEME WILL FOR THE FIRST TIME BE INSUFFICIENT TO MEET THE

DEMAND AND THAT THE HONG KONG GOVERNMENT WILL HAVE TO MAKE UP THE

SHORTFALL BY LOANS. I WOULD WELCOME ANY VIEWS YOU MAY HAVE ABOUT

HOW THE ADMINISTRATION OF THE SCHEME COULD BE IMPROVED.

5. YOU SHOULD ALSO KNOW THAT GEOFFREY HOWE HAS EMPHASISED THAT

OUR POLICY ON THE JOINT FUNDING SCHEME SHOULD BE STRICTLY RING

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