COPY.
Enclosure 2.
192
His Excellency the Governor met the Unofficial Members of the Executive and Legislative Councils in the Council Chamber at 12.30 p.a. on Friday the 20th August, 1920, to consider the position arising from the preliminary
report of the Commission appointed to enquire into the
position and working of the Hongkong University.
A draft announcement which it was proposed should
be inserted in the Gazette was before members.
His Excellency said that unless we were prepared
to allow the University to fall through which would entail a
great loss of prestige we must find a large sum of money
immediately and must increase the annual grant to some 850,000 a year. This did not allow for expansion.
The Colonial Secretary drew attention to the fact
that no allowance for depreciation had ever been inserted
in the accounts and considered that provision should be made
for such depreciation.
His Excellency continuing stated that the object
of the Government was to show to the general public that
Government intended to carry the matter through with the hope that the public would come forward and help in building up
an endowment fund. He had already telegraphed to the Secretary of State and proposed to ask Legislative Council to agree to the proposals if the Secretary of State approved.
It was necessary to pay off the indebtedness at once but it might be possible to increase the endowment fund
gradually.
Mr. Sharp stated that a substantial endowment fund
was most important; the Commission made a strong point of
that.
Mr. Ho Fook suggested instead that an increased annual grant might meet the case and that it would not matter whether the X1,000,000 was in Government's hands or in those
of the University.
Mr.