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Government, established, is the higher education of the
Chinese, and I consider that a reversion to the state of
affairs obtaining up to the end of 1926, when the only Chinese study possible in the University ended at the intermediate stage of the Arts Faculty's curriculum, would be, at the present juncture so politically disastrous, that, though fully conscious of the possibility of failure, I have decided to launch a local appeal for such capital sum as may be found to be necessary for starting a Chinese School in the University on a permanent basis. But even if my appeal be in a measure successful, I do not anticipate that the funds thus raised will be sufficient to do more than start the
Chinese School in a very rudimentary form. Buildings must be erected before even the most rudimentary Chinese School can be reasonably accommodated. This will add substantially to the initial capital cost which must be collected, and over and above the insistent demands for a Chinese School, the University is faced with the alternative either of finding additional money to finance its existing Faculties of Medicine, Engineering and Arts, or of curtailing seriously the work which it is now attempting.
6.
In these circumstances I should be failing
in my duty, if I did not emphasise once more the serious loss to British influence in the Far East which the curtailment of the already inadequate activities of the Hong Kong University will involve, and repeat my suggestion that out of the money now lying in the Hong Kong and Shanghai Bank the capital sum for which the University has asked, namely £1,404,000, should be made available for the University's development.
7.
In your despatch under reply you remind me
that
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