TNAG-2075-FCO40-2955-Joint-Funding-Scheme-between-Hong-Kong-and-the-UK-increase-i-1990 — Page 48

CONFIDENTIAL

год

DESK OFFICER

HKB 286 | 1

RECEIVED IN REGISTRY

20FEB 1990

REGISTRY

त

ĥlo to

e

pls.

PA

ction Taken

CONFIDENTIAL

FM HONG KONG

TO PRIORITY FCO

TELNO 333

OF 250945Z JANUARY 90 INDEX

INFO ROUTINE HKGO LONDON

051760

MDLIAN 3127

१

STONE

received

2012

257

GF.

89 HKD 286/1:(57

UK/HK JOINT FUNDING SCHEME

YOUR TELNO. 2529.

attarched

For ref

2.

THE UK/HK JOINT FUNDING SCHEME WAS CONSIDERED BY THE EXECUTIVE COUNCIL ON 23 JANUARY. WHILE THE USE OF A NOTIONAL HOME FEE RATE FOR GRANT ASSESSMENT PURPOSE WAS WELL RECEIVED, MEMBERS WERE CONCERNED THAT, AS A PROPORTION OF THE TOTAL ASSISTANCE, THE GRANT ELEMENT HAD DROPPED FROM 97 PER CENT IN 1987-88 TO 75 PER CENT IN 1989-90 AND WAS PROJECTED TO DECLINE EVEN FURTHER DUE TO INFLATION AND INCREASED NUMBERS ASSISTED.

3.

THE ORIGINAL OBJECTIVE OF THE SCHEME WAS TO CEMENT TIES BETWEEN UK AND HONG KONG AND GENERALLY PROJECT TO HONG KONG STUDENTS A POSITIVE IMAGE OF UK. THIS IS LIKELY TO BE ERODED AS THE AMOUNT OF GRANT AVAILABLE TO EACH STUDENT DECREASES AND THE LOAN ELEMENT PREDOMINATES. DESPITE BEING BRIEFED ON THE SENTIMENTS EXPRESSED IN PARA 3 OF YOUR TELNO 3149 OF 1987, MEMBERS STRONGLY URGED THAT THE GRANT PROVIDED BY HMG BE INCREASED, AT LEAST, TO TAKE ACCOUNT OF INFLATION.

4 =

WE WOULD BE GRATEFUL TO KNOW IF THE TWO MILLION POUNDS CONTRIBUTION FROM HMG COULD BE INCREASED TO ACCOMMODATE MEMBERS' REQUEST. WE WILL, OF COURSE, MATCH ANY UPWARD ADJUSTMENT YOU ARE PREPARED TO AGREE.

WILSON

YYYY

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