TNAG-2764-FCO40-3981-UK-Hong-Kong-Scholarship-Scheme-donation-to-the-UK-Governme-1993 — Page 48

Mr Long CRD

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UK/HONG KONG SCHOLARSHIPS: JOINT FUNDING SCHEME

1. Sorry for the delay in replying to your minute of 18 January to Ms Haspel. As I said on the phone we have been waiting to find out what the Hong Kong Government's plans are with regard to the scheme. I am now in a position to comment.

2. Hong Kong government have recently completed a review of the scheme. Various proposals for the future of the scheme were put before the Executive Council and approved. The conclusions reached were as follows:

the JFS should be phased out by 1996/7 starting from 1994/5;

- the phasing out should ensure that those students who are studying in the UK in 1993/4 will be eligible to apply for the awards until the completion of their exisiting courses;

HMG should be asked to consider whether, as its contribution to the JFS gradually reduces, the savings might be diverted to funding improvements in the UK/HK Scholarship Scheme.

HKG have specifically asked for confirmation of HMG's commitment to the scheme until 1996/7.

3.

HKD supports the Hong Kong Government's proposal to commence the phasing out of the scheme in 1994/5. A wind-down commencing in 1994/5 would allow students on 3 year diploma courses to benefit from the scheme until the completion of their studies. The HKSAR government take up office on 1 July 1997 and there is therefore unlikely to be any overlap between the close of the academic year and the transferral of sovereignty. We are keen to maintain academic links with Hong Kong and there is a danger that we will send a negative signal to Hong Kong if we decide to withdraw from the scheme a year earlier than the Hong Kong Government. The last years of British administration of Hong Kong are likely to be difficult; and we and the Governor would not want to do anything that might fuel the impression that we are not fully committed to the task.

4. We recognise the severe pressure under which the Diplomatic Wing global scholarship budget is under but we believe there is still a strong case for continuing the funding of scholarships for Hong Kong after 1997. Although

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