the facilities in Hong Kong for education in universities and such other institutions as may from time to time be designated by the Chief Executive of the Hong Kong Special Administrative Region (HKSAR);

such plans for development of such institutions as may be required from time to time;

the financial needs of education in such institutions; and

on the application of such funds as may be approved by the Legislature for education in such institutions; and

on such aspects of higher education which the Chief Executive of the SAR may from time to time refer to the Committee.

Having regard to Hong Kong's dual role as a leading metropolis and business hub of South China and as a regional and international financial and service centre and hence its need for an adequate supply of high quality and bilingual manpower and an engine-room of innovative science and technology;

Considering the rapid changes happening in Hong Kong and worldwide, and hence the need for people with intellectual capability, international outlook, flexibility and leadership skills who can take up the political, economical, social and cultural challenges of the time;

Drawing on Hong Kong's uniqueness as the meeting point of different cultural, social, economical and business systems;

Recognising the merits of, and the need to preserve, academic freedom and institutional autonomy subject to appropriate financial and public accountability as well as the different and complementary roles of the UGC-funded higher education institutions;

The University Grants Committee, in performing its function as the advisory body to the HKSAR Government on the developmental and funding needs of higher education in Hong Kong, will:

the provision of appropriate internationally recognised academic and professional programmes to meet the manpower and education requirements as stated above;

the conduct of research and development;

becoming centres of academic excellence in the region; and

technology transfer;

encourage institutions' collaboration and consultation with the various education sectors in the planning of the provision and structure of higher education;

encourage and reward excellence in each of the institutions' activities, including teaching, research and other scholarly activities in accordance with its specified role and mission;

promote efficiency and cost-effectiveness in the activities of the institutions; and

avoid undue intervention in the affairs of the institutions, subject to this being commensurate with the need for the Committee and the institutions to be publicly accountable.