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telegram No. 14 to you.
I explained that you had already
approved one and two but not three.
3. He appeared favourably impressed with these
drafts but raised a point about grant to Hongkong Univer-
sity. He expected to have to meet some opposition to this
in certain quarters which could more easily be overcome if
it were understood that grant would cover debts owed, and
promises of financial support given, by certain provinces
to University. In this connexion he mentioned as well out
standing debts for scholarships etc., an undertaking given by Kwangtung to pay a subsidy of 100 thousand dollars a
year which had not been paid for some years. I discouraged
this suggestion as much as possible taking line that grant
was meant to be a clear cut transaction of its own and
referring again to generosity of our action and finally I suggested that if point was really material (which I hoped
it was not) difficulty might be got over by adding to grant
from indemnity funds an equivalent amount sufficient to
cover final provincial outstandings. I think this proposal
rather took him' aback.
A.
On the whole I received the impression that our
proposals are likely to go through but I should be glad to
receive early instructions on the point concerning exant to
Hongkong University, the proposal to divert portion of funds to currency re-organization, and on draft 5 which is based on your telegram No. 137 to Peking (? 1.e.) whether latter
meets with your approval.
5. I gathered that Minister for Foreign Affairs is in
favour of a foundation or board of trustees of some kind
which he probably feels would form some protection for funds
in times of political confusion; and I explained that a
paragraph/