TNAG-2483-FCO40-3614-UK-Hong-Kong-Scholarship-Scheme-donation-to-the-UK-Governme-1992 — Page 186

PCS 285/393/1

29 January 1992

Muits 785/1

Нив

Foreign & Commonwealth Office

36

J Smith-Laittan Esq

British Trade Commission Hong Kong

pa. plse.

London SWIA 2AH

Telephone: 071-

Ys Margel

Psal

Dear James

UK/HK SCHOLARSHIPS SCHEME

Thank you for your letter of 23 January and for these helpful comments.

According to our understanding of the enclosures to John Chan's letter of 21 October, the additional contribution required from the FCO (over and above the continuing £40,000 annually from FCOSAS, and £85,000 contribution annually from the interest from the S K Tang Bequest) until 1996/97 is a total of £408,850 (as set out in Section 10 of the enclosure ie one half of the figures which also appear in column 4 of Appendix II).

The essential point for us and the only basis on which we can respond to John Chan's letter is that all the funding for the UK/HK Scholarships Scheme on the FCO side must come from the £40,000 annually from FCOSAS and from up to two-thirds, repeat two-thirds, of the interest (that is both accrued and current) from the £1 million Sir S K Tang Bequest. (We understand the other one-third of the interest was designated for other purposes than scholarships). We are very happy to agree additional FCO contributions to the Scheme (to enable 9 new awards to be made annually and up to 1996/97) providing all of the additional costs can be contained within these existing sources of finance.

We have noted the reference at (3) of Appendix IV to a figure of £708,000 as being the accrued interest on the £l million Bequest at 1/9/91 . We assume that this represents the total accrued/current interest not just the two-thirds

CHJABI