TNAG-2484-FCO40-3615-UK-Hong-Kong-Scholarship-Scheme-donation-to-the-UK-Governme-1992 — Page 71

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5. The Hong Kong Government have not formally specified any figure

for the proposed increase in HMG's contribution. But Mr K Y Yeung,

the Secretary for Education and Manpower has confirmed that an

increase in line with inflation would be well received in Hong Kong

as a sign of HMG's continued commitment to the Schepe.

6. In 1987 Ministers reviewed the fee support schemes for Malaysia, Cyprus and Hong Kong and decided that they should be phased out, because they had achieved their objective of reversing

the downward trend in the number of students coming to the UK and

would be better replaced by the selective and targetted FCO Scholarships Scheme. (The fee support schemes are of course

non-selective). But it was eventually agreed on political grounds that the Hong Kong scheme should be maintained at its existing

level of £2 million per annum. Hong Kong is currently the largest

recipient of the FCO Diplomatic Wing's Scholarship resources.

A continuing flow of Hong Kong students coming to the UK for

university education is one of the best means of building up

long-term links with the territory stretching beyond 1997. There is

also a long term economic and commercial advantage to Britain, particularly at a time when an increasing number of students are going to the United States for their training.

3.

There would be significant presentational and political benefits

we could meet Hong Kong's request. It would provide Mr Maude with something positive to announce during his forthcoming visit to Hong Kong in April; it would be seen as a worthwhile gesture of support, which would be widely welcomed in the territory, particularly at a time when the expansion of tertiary education is regarded as a top priority by the Hong Kong Government; and it would

also help us to deflect criticism that our nationality package is

only aimed at helping the wealthy elite.

3. The problem is money. There is no budget subhead from which

100,000 can be found in F 1990,'91. The FCO Scholarships and

Awards Schems, from which the Joint Funding Scheme is presently

funded, is wirendy fully committed for elective Schenes 1920/91.

ction procedures are walk onzekded F Avards have already bey