TNAG-2679-FCO40-3876-British-Trade-Commission--Hong-Kong--and-China-Trade-Unit-re-1993 — Page 57

.1993-08-31 18:34

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At Section 3 (Local Budgets), we have included a bid for a part-time LEII inward investment officer. We have seen the recent exchange of letters between Malcolm Day (IBB) and Christopher Hum and also Christopher Hum's letter of 30 July to Adrian Thorpe in Tokyo. Inward investment work features as one of our objectives and at present the work is done mostly by David Smith (DS6) with support from the STC and myself. part-time LEII officer would cover the ground much more adequately (you may recall that we employed Wee Lian Hoon to do a similar IBB job some 20 months ago). We do not consider this a high priority, but if funds were to become available for IBB work, particularly now that the Secretary of State for Trade and Industry seems minded to form an Inward Investment Board along the lines of the BOTB, then we would wish our bid to be considered, Although admittedly there is not an overwhelming interest from the business community here for green field developments in the UK, there is a good deal of interest in company acquisitions (work not done at present by the IBB but nevertheless valuable in job retention terms for the UK and where we could be doing more).

On Section 4 (Programmes), Hong Kong Department is, I think, better qualified to complete the FCOSAS programme expenditure schedule (page 8 of the TMR questionnaire). We have not been directly involved in the management of this scheme and have not seen papers on the recent Executive Council decision to withdraw HKG funding (although we were aware that this is what the then Education Secretary had recommended). We hope to be able to reply soon to your letter of 7 June. What we do not know however is how the £2. 2 million matching contribution from HKG will be scaled down between now and FY96/97, the information needed to complete Section 4 of the TMR questionnaire. Similarly we do not have a direct management responsibility for the HK/FCO Scholarship Scheme. But I think we are all agreed that this scheme should continue at least at its present level for as long as possible. The review date for this programme falls due in FY 1994/95. The Jockey Club may then wish to reconsider their position and it is not inconceivable that we will find that they too will wish to withdraw for the same reasons as HKG. That, coupled with a drop in interest from the Sir S K Tang bequest, would mean that the FCO contribution would have to be increased considerably if the scheme is to survive. But it is impossible to estimate at this stage.

On category I & II visits, the present quota of 12, split equally, will probably be sufficient for the foreseeable future. As you know, we have had difficulty in attracting the right sort of candidates for these sponsored visits. We do not therefore propose to bid for a higher quota in this return.

At Section 5 (Capital Expenditure) it is too early still to say what the expenditure pattern will be on completion of the new consulate-general building. But on vehicles, we think that our present allocation of 5 vehicles should provide a sufficient

We have not therefore bid for pool for the consulate-general. more in this return.

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