TNAG-2075-FCO40-2955-Joint-Funding-Scheme-between-Hong-Kong-and-the-UK-increase-i-1990 — Page 50

1-

UNCLASSIFIED

FM FCO

TO ROUTINE HONG KONG

TELNO 2529

OF 19094OZ DECEMBER 89

INFO ROUTINE BTC HONG KONG

UNCLASSIFIED

Rea

P. PHICO 286/1

RECEIVE

DY

23 JAN 1990

DESK OFFICEF INDEX

135615 MDLOAN 9980

REGISTRY

PA

Action Taken

YOUR TELNO 361U: UK-HK JOINT FUNDING SCHEME

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 PERCENT 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 PERCENT 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

YYYY

ΜΑΙΝ

17

MINIMAL CRD

ADDITIONAL

1

MR Y K SO, STUDENT ADVISER, CHONG KONG GOV OFF LONDON)

NNWW

DISTRIBUTION

18

PAGE

FINANCE DEPARTMENT HKD

1

UNCLASSIFIED