TNAG-2764-FCO40-3981-UK-Hong-Kong-Scholarship-Scheme-donation-to-the-UK-Governme-1993 — Page 127

CODE 18-77

Ms Saunders Mr Morris

Mr Ricketts

FCO SCHOLARSHIPS SCHEME:

#

Reference

paisch.

®

RECE

MAR 283

21 JAN 1993

1. I have received a response from CRD on my draft reply to Mr pinham about Hong Kong's proposed withdraw of funding for the Joint Funding Scheme (JFS).

thdraway of

2. CRD have gone beyond the draft letter itself to examine the wider picture and have put forward a host of arguments (para 2) with the following conclusions (para 3):

JFS to be run down starting 93/94 with the last payment 95/96. The saved resources they would like to see deployed elsewhere butside of Hong Kong.

the UK/HK Merit Scholarships Scheme to be continued with funding from the Jockey Club, S K Tang and FCOSAS assuming all these could be maintained after 1997. This scheme is due to be reviewed 94/95. The S K Tang money is redeployable as it is for HMG to distribute.

an additional £0.25m (saved from year 3 of the run down of fee support) to go to Peking's annual FCOSAS allocation to fund targeted awards in Hong Kong and elsewhere in China, making China the major recipient of FCOSAS resources.

we should bring FED in to the discussions as after 1997 they will be responsible for Hong Kong.

I would suggest that we agree with CRD's suggestion of starting a wind down of the JFS from 93/94. We have to then decide whether we wish to fight for funds to be redistributed to Hong Kong or would we be content with them going elsewhere. Ι should have thought it would probably be wise at this juncture to bring forward the review of the UK/HK Merit Scheme in light of the withdrawal of the JFS.

Sarah Haspe

SJ Haspel

Hong Kong Department

19 January 1993.