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present activities something moreover, which must be built up slowly. A grant of £250,000 would
enable the University to attempt to realize the Chinese Faculty and possibly to provide the new buildings which that Faculty would require; but
meanwhile the difficulties of the University's other
Faculties, and of the Institution as a whole, will be
becoming more acute. These adverse conditions would seriously prejudice the Chinese Faculty from its first
inception.
13. It is becoming more and more evident to me
that the University cannot continue on its present
financial resources to carry out effectively even
such work as it is now attempting. I have just been compelled to ask His Honour Sir Henry Gollan, C.B.E., the Honourable Sir Shou-son Chow and Mr. Paul Lauder,
who have been inquiring into the question of the salaries of Government employees in Hong Kong, to
extend their inquiry so as to investigate, as a special committee, the salaries of the University staff, which are believed to be seriously inadequate.
The report of this Committee will almost certainly recommend an increase in salaries; but the University has no endowments from which such an increase can be
paid.
14.
I now learn for the first time that the Universities' China Committee is a body consisting of representatives of British Universities and others, and that the main purpose of the Committee is to invite eminent Chinese to lecture in Great Britain.
I understand that it was under the auspices of this Committee, that Dr. Hu Shih lectured in some
British