-2-

Its salient 63

the majority of British opinion was opposed to it.

characteristics were:- It was residential; English was the medium

of instruction; Chinese from China and elsewhere were welcomed; it

was affiliated to Oxford and Cambridge and students were discouraged

from going to England until they had graduated and their characters

were to a large extent formed. (Fuller-particulare of the aims are

in attached sieme

It had been our hope to create a Chinese Faculty with the object

of training men for high administrative and political office in

China who would act as a counterpoise to American influence; but

though supported by both Pekin and Canton who made generous contribu-

tions and sent students, this hope has never been fulfilled, and the

University has been in chronic financial difficulties

The circum-

stances of its foundation precluded an adequate endowment. This

a risk deliberately accepted.

Apart from a sum of £15,000 to pay off debts owing to the

University by Chinese students, a sum of £260,000 only has been allot-

ted to the University from the Boxer Indemnity. (Mr. Amery I think

was in favour of at least a million). The interest on this sum

much would be £10,000 at most, and this will not suffice to do/more than

meet the existing deficit due to the fall in silver which has halved

the salaries of the Staff, and provide some scholarships.

Kong Government which now gives a very heavy subvention(

is unwilling that a new faculty (e.g. Chinese) should be started

unless assured that it will be self-supporting.

The Hong

350,000 )

It is surprising to me that His Majesty's Government has failed

to recognise the immense potential importance of the Hong Kong Univ-

ersity for promoting British influence and trade in China. Properly

used there is no other agency which can compare with it. In refer-

ence to the questions (noted above) from the Secretary of State, I

have conferred with Professor Foster (Education Branch of Arts

Hon. Faculty, Hong Kong University) and with Mr. Silcock Secretary, Chim

China

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Universities Committee, and I submit the following suggestions:-

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