TNAG-2765-FCO40-3982-UK-Hong-Kong-Scholarship-Scheme-donation-to-the-UK-Governme-1993 — Page 127

das darove

R

enter

2217

HKB

285/1

158

RESTRICTED

RECEIVED IN

ISTRY

From!

DES!

IND

22 ! 1993

CO Hum

PA

Date:

21 July 1993

Mr Mørris, HKD

Morris,

SCHOLARSHIPS FOR HONG KONG

1.

Mr Davey, my opposite number in the British Council, came to see me this afternoon. He said that the British Council had become aware of the instruction to the British Trade Commission in Hong Kong to consider the scope for increased private sector financing of scholarships for Hong Kong students, and he asked me for the background.

2.

I outlined the position as it had been discussed at Mr Goodlad's recent office meeting. Mr Davey said he understood why the Joint Funding Scheme for Hong Kong students would have to come to an end before 1997. But he had been considering a possible alternative way of bringing the scheme to a conclusion. Instead of simply running down its contribution, HMG would instead donate equivalent funds into a trust fund designed to continue the provision of scholarships beyond 1997. If the donations were made before 1997 and administration of the trust fund was then placed in the hands of independent trustees, this would be compatible with the new political relationship between Britain and Hong Kong. Such a scheme would be welcome in Hong Kong as a signal of HMG's interest in what would happen after 1997. He felt it was likely that a high-profile scheme of this sort would attract substantial matching funds from the private sector in Hong Kong - probably considerably more than we could secure from the sort of overtures to the private sector in which the Trade Commission was currently engaged.

3.

I said that at first sight his idea was an attractive one. I thought it would also appeal to Mr Goodlad, given the latter's concern that our provision for scholarships to Hong Kong students should not run down too abruptly. However there were some difficulties of presentation, given the nature of the decision which we had already taken with CRD and communicated to the Hong Kong Government.

4.

We agreed that in the circumstances the best approach would be for the British Council, in Hong Kong and London, to work up the idea which Mr Davey had

RESTRICTED