TNAG-2075-FCO40-2955-Joint-Funding-Scheme-between-Hong-Kong-and-the-UK-increase-i-1990 — Page 44

CONFIDENTIAL

FM BTC HONG KONG

TO PRIORITY FCO

TELNO 31

OF 31114OZ JANUARY 90

AND TO PRIORITY HONG KONG

CONFIDENTIAL

HKB 286 / 1

RECEIVED IN RES RY

20FEB 1990

DESK OFICER

INDEX

FG. TRY

on laken

070131

MDLIAN 4538

HONG KONG TELNO 349 AND 333: UK/HK JOINT FUNDING SCHEME

1. FROM THE VANTAGE POINT OF THIS POST I HOPE VERY MUCH THAT IT WILL BE POSSIBLE TO INCREASE THE FUNDING AVAILABLE FOR SENDING HONG KONG STUDENTS TO THE UK AS PROPOSED IN THE TURS, SUFFICIENT TO TAKE ACCOUNT OF INFLATION, TO REDUCE THE LOAN ELEMENT, AND BETTER STILL TO INCREASE THE QUANTITY OF STUDENTS.

ECONOMIC

2. THE STRENGTH OF BRITAIN'S POSITION IN THE COMMERCIAL, AND CULTURAL LIFE OF HONG KONG IS STRONG AND OFTEN UNDERESTIMATED. NEVERTHELESS THE POSITIONS OF THE UNITED STATES, JAPAN AND INDEED OTHER EC PARTNERS IS STRONG AND IN ALMOST ALL CASES IS GROWING (E.G. HIGH LEVELS OF CURRENT JAPANESE INVESTMENT: MUCH GREATER TRADE BETWEEN HONG KONG AND THE UNITED STATES THAN BETWEEN HONG KONG AND THE UNITED KINGDOM, AND THE AMERICAN COMMUNITY NOW IS AS LARGE IF NOT LARGER THAN THE BRITISH: EXPORTS FROM GERMANY AND ITALY TO HONG KONG ARE GROWING AT A MUCH FASTER PACE THAN THOSE FROM THE UK). TO HOLD OUR OWN, PARTICULARLY IN COMMERCIAL TERMS, WE ARE OF COURSE MUCH HELPED BY HAVING AN OLDER GENERATION WHO WERE SUBSTANTIALLY TRAINED IN THE UK OR BY THE BRITISH HERE. NOW OTHERS HAVE GREATLY INCREASED THEIR ROLE AND INFLUENCE, AND THE NUMBER OF STUDENTS GOING ELSEWHERE AND PARTICULARLY TO THE UNITED STATES IS VERY HIGH. ANYTHING THAT WILL INCREASE THE FLOW OF HONG KONG STUDENTS TO THE UK SHOULD HELP US IN MAINTAINING OUR LEVEL OF EXPORTS AND PERHAPS OUR MARKET SHARE. THIS IN ADDITION TO MAKING A SUBSTANTIAL CONTRIBUTION TOWARDS KEEPING HONG KONG AN INTERNATIONAL FINANCIAL AND COMMERCIAL CENTRE, WITH ALL THE POLITICAL SPINOFF FROM THAT.

HEAP

YYYY

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