719
TELEGRAM from the Governor of Hong Kong to the Secretary of State
For the Colonies. Dated 21st July.
(Received, Colonial Office, 12.26 p.m., 21st July, 1930).
5 No.74.
Your despatch 3rd May 1930 No.127. Hong Kong University
finance. Further fall in exchange has increased anticipated deficit for
1930, without any revision of salaries to $178,000, or, deducting pro-
vision in University Estimates of $40,000 for loss on exchange, $138,000
nett deficit. Grant of $200,000 sanctioned in your despatch must be
first applied to balance deficit, and only $62,000 would thus be left V for revision of salaries, which as recommended by the Committee would
cost $200,544 if exchange is taken at $1 equals 1/4, which is still
above current market rate.
I am satisfied that a very serious crisis will arise in the
University unless a revised salary scheme is carried into effect to a
much more substantial degree than $62,000 will allow. I have therefore suggested bothe Unofficial Members that the Government should in lieu of
the $200,000 sanctioned by you make the University a grant of $300,000
for 1930 (over and above the regular grant of $50,000) on the under-
standing that it shall be first applied to balancing University's
Budget for the year, and that the University shall produce a modified
scheme of revised salaries which will bring increase within surplus
left after balancing, and leave a margin for contingencies. Unofficial Members and the Executive Council have unanimously agreed to this, also to waive proviso for reimbursement from Boxer Indemnity Fund.Grant would be for 1930 only and position would be reviewed annually in the light of exchange prospects. I request your authority to take formal Vote accordingly. As matter is urgent I shall be glad of an early
reply.