TNAG-2075-FCO40-2955-Joint-Funding-Scheme-between-Hong-Kong-and-the-UK-increase-i-1990 — Page 32

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HKB 286/

¡ECEIVED IN REGISTRY

Mr A Paúl, HKD

P301,

Miss Harsdow

Pl discuss

CONFIDENTIAL

W/3/3

From:

J N Elam

07 APR 1990

DESK OFFICER

INDEX

BA

Cultural Relations Department

Mr

Stone.

Date:

6 March 1990

CC:

PS/Mr Maude

PS/Mr Sainsbury

Miss Spencer

Mr McLaren

received 081500

UK/HK JOINT FUNDING SCHEME

1. You asked if CRD could agree to Hong Kong's request for an

increase in HMG's contribution to the Hong Kong fee support scheme

for 1990/91 and subsequent years.

2.

CRD's approach to the question should be seen against the following background. Fee support schemes were introduced as interim measures in 1983/4 in Hong Kong, Malaysia, Cyprus, Bermuda and the Cayman Islands to offset the adverse effects of full cost fees for overseas students. They are designed to make up the

difference between the UK home and overseas tuition rates. The

sending Government administer and select all the candidates. There

is no discrimination in selection on academic or merit grounds. The

fundamental FCOSAS criterion of the potential benefit to the UK of

the candiate is not applied.

3.

Ministers decided in 1987 that fee support schemes had achieved their objective of reversing the downward trend in the numbers of students coming to the UK from these territories, and that the

schemes should be phased out. The resulting savings were to be deployed through the FCO's Scholarships and Awards Scheme for targetted awards of greater and more direct benefit to the UK's interests. But the then Secretary of State ruled that on political grounds the Hong Kong scheme should be maintained and we continue to contribute ₤2m pa for these reasons.

/4.

In that

- 1 -

CONFIDENTIAL