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$50,000 to $350,000. The terms on which the grant was given.
are:-
(a) The total grant of $350,000 to be made on account
of 1930.
(b) The increased grant to be used in the first place to balance the University budget to the close of 1930 on the basis of existing salaries.
(c) The University to produce a modified scheme of revised salaries for both its sterling and dollar paid servants which would bring the cost of the revisio 1 within the surplus left from the grant
after balancing the budget and leave a reasonable margin for eventualities,
(d) The grant to be subject to revision annually in the light of the exchange conditions then prevailing.
(e) The increased grant not to be conditional on imbursement from Boxer Indemnity funds,
re-
On receipt of the enhanced grant the Council appointed a committee consisting of Mr. Paul Lauder, the Vice-Chancellor, Hon. Mr. S. W. Tso, Mr. John Fleming and Prof. Middleton Smith to consider the formulation of a modified scheme of revised salaries for the University Staff.
The Committee recommended (Mr. John Fleming dissent- ing) that the sterling salaries should be raised by 12%% as from the 1st January, 1930.
It was stipulated that sterling salaries should be paid at 1/3d. which was to be regarded as a minimum rate, that is, if the rate of exchange were to fall below that figure) the salaries nevertheless would be calculated at 1/3d.
The Committee also recommended that sterling salaries should be paid at 1/3d. and continue to be paid at that rate so long as the sterling equivalents of the dollar salaries were not greater than the sterling salaries suggested in the University Committee's Report calculated as laid down in that Report at the average current rate of exchange for the month as determined by the Colonial Treasurer or at exchange 2/- whichever is less. The Committee added as a proviso that when, and so long as, the sterling equivalents of the dollar salaries paid reach the sterling salaries suggested in the University Committee's Report,
those salaries should automatically form the basis of should be paid as provided in that Report.
pay and
The Committee also recommended that the rate of exchange of 1/3d. should be considered a minimum and that if the rate of exchange fell below that figure the salaries should nevertheless be calculated at exchange 1/3d. subject, always to the proviso men- tioned in the preceding paragraphs.
The Committee also recommended that the salaries of the dollar paid employees of the University should be increased by $7,032 a year.
The scheme was accepted and sanctioned by the Council and the Court of the University as the best possible temporary solu- tion of the salaries problem pending the receipt of further funds.
Then the value of the dollar rapidly sank to below one shill- ing. When the dollar fell to 1/1 the 12% increase was wiped out. Ever since the dollar has been below that figure the members of the staff on sterling salaries have been drawing actually fewer dollars than they would have drawn had the 12% in- crease not been allowed them.
Since the close of the year under review the University has received from the Chinese indemnity a sum of £265,000 which having been invested in London should bring in an annual income of about 12,000. But the salaries anomaly can not be equitably adjusted and the University's continuance on a possible financial basis assured, unless the increased annual grant from Government be not only retained but guaranteed. It is impossible to conduct a University on an income which is liable to serious annual fluctua- tions. The financial difficulties of Government are appreciated. But the handicap to British influence and trade in China, insepar- able from the
very small part which graduates from British Universities are playing in the administration and development of the country is also beginning to be realized. A contribution for the University from the China Indemnity was persistently demand- ed by the Government of Hong Kong. Now that the contribution has come not the contribution asked for, but still a substantial endowment-it would be unfortunate were the effect of that con- tribution either partly or wholly neutralized by the reduction of the Hong Kong Government's annual subvention.
W. W. HORNell,
Vice-Chancellor.
Dated 5th May, 1931.
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