TNAG-1981-FCO40-2814-UK-Hong-Kong-Scholarship-Scheme-donation-to-the-UK-Governme-1989 — Page 85

UNCLASSIFIED

ZCZC

UNCLASSIFIED

FM FCO

TO ROUTINE HONG KONG

TELNO

OF 041645ZZ DECEMBER 89

AND TO INFO ROUTINE BTC HONG KONG

YOUR TELNO 3610: UK-HK JOINT FUNDING SCHEME

ROUTINE

1. We confirm that subject to Parliament continuing to vote the

necessary funds, we are ready to continue providing pounds 2 million annually towards the grant element of the joint funding

scheme. We propose that the arrangements should be subject to further review towards the end of a three year period ie. 1992/93. We also propose that the notional home fee rate for

grant purposes for 1990/91 should be pounds 637 ie. pounds 607 for 1989/90 raised by 5%. We would similarly suggest that, roughly in line with increases in the home fee rates in previous

years, the notional rate for subsequent years should also rise by

5% annually.

2. We are pleased to note you will continue to match HMG's

contribution and to meet any excess of eligible assistance over

funds available for grants through interest free loans.

HURD

M J LONG

CRD

210-6285