TNAG-2483-FCO40-3614-UK-Hong-Kong-Scholarship-Scheme-donation-to-the-UK-Governme-1992 — Page 181

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Ins Haspel,

Маз

Muz 285/1

Ms Saunders'

Kal 29/1

I agree

with your recommendation and have telephoned Mr Long lo

Mr Ricketts

Fell him so

K. Sanda

Х

UK/HK SCHOLARSHIPS SCHEME

1.

I have received a copy of a draft letter to

Mr J Smith Laitten, BTC, from Mr Long in CRD. Mr Long would like our comments on this draft by Friday of this week.

2.

Mr Long's letter sets out to ask Mr Smith Laitten to investigate the present sums of money in Sir S K Tang's bequest. This is to help Mr Long to construct a reply to the Secretary of Education and Manpower, Mr John Chen's letter of 21 October.

3.

Mr Chen and the UK/HK Scholarship Board in Hong Kong would like to see more scholarships made available each year, which requires increased funding. Mr Long has calculated that the present cost of the scheme to the FCO is half of £250,000, (the other half is met by the

Royal Hong Kong Jockey Club). This is covered through £40,000 from FCOSAS and £85,000 from the interest on Sir Tang's fl million bequest. If the scholarships are increased by 9 each year, as is suggested, then the additional costs from 1992 to 1996/7 would amount to £817,700. The FCO would be providing half of this, £408,850. Mr Long calculates that two-thirds of the accrued interest that is sitting on the bequest is £472,000 which would cover the FCO's share of additional costs.

4.

The question that is left hanging however, is what will happen once £472,000 has been spent? In 1996/7 we would face a sudden cut back in funds available to the scheme, with only the £125,000 that we pay now available.

5.

I recommend we approve Mr Long's draft letter to

Mr Smith Laitten and await the updated figures. Mr Long also suggests Mr Smith Laitten talks to Mr Chan about the situation. Hong Kong will be aware that the scheme's additional funding suddenly drops off in 1996/7. Therefore, it is important for the FCO to start making some decisions on the issue of 1996/7 before committing ourselves and the money.

Sirah Harpel

S J Haspel

WH 311 270 2657

29 January 1992

YETACY

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