TNAG-2765-FCO40-3982-UK-Hong-Kong-Scholarship-Scheme-donation-to-the-UK-Governme-1993 — Page 157

our priority sectors. We try to identify/design projects with specified, time-bound objectives which will promote the development of key institutions and/or influence the development

of Chinese 'Government policy. These projects may include the

provision of training alongside other inputs such as

institutional links, consultants' services, seminars etc.

14. I recommend that we should seek to avoid an extension of the

SBFSS, with a view to using the resultant savings on environment and good government projects, in line with our objective of sharpening the focus of our TC programme in China.

15. BE Peking see no political objection to this approach.

However they are a little nervous about the timing of the 1 July

meeting relative to the Hong Kong constitutional talks. To avoid

the risk of sending a negative signal, it is therefore proposed that if SYKPF or SEdC propose an extension on 1 July, we should

not reject the idea immediately, but say that we would study the

question further, but that pending decisions new PhD awards should stop after an appropriate date.

Priority sectors

a

environment

and

16. SBFSS is currently focussed on science and technology, with

few awards in economics, social science and the humanities.

We are focussing the rest of our China TC programme on better government, including public

administration, management, finance and economic reform. It

would be

be desirable from ODA's point of view if a greater proportion of SBFSS awards were devoted to environment and better government subjects. This would complement the rest of our TC programme, and help to enhance our impact in these areas.

However we judge that the extent to which we can reform the

scheme in this way is likely to be limited. SEDC have their own

priorities and are tough negotiators. But I recommend that we