8

3.

Provision for the usual

grant of £300 is being made in the

United Kingdom Estimates for 1939/40,

which are now under consideration.

I have, etc.

(Sgd.) MALCOLM MacDONALD

Pag

Pag

No. 872

7338621326

H R

153710/361

on | | 53611/1/38 || Amex)

J

ge 9

27

9

GOVERNMENT HOUSE,

HONG KONG.

29th November, 1938.

Sir,

Copy to treas t

Frequ

I have the honour to acknowledge receipt of your

[], despatch No. 348 of 17th October, 1938, on the subject of

Fresso]

جی

Encls. Nos.1,2

& 3.

the King Edward VII Scholarships at Hong Kong University.

2.

It is true, as stated, that the balance of this fund at 31st August, 1938, had not been reduced by the full amount contemplated under the scheme of increased scholarships reported in Sir William Peel's despatch No. 554 of 31st October, 1934. This appears in the main to be due to the fact that, as reported in Sir Thomas Southorn's despatch No. 630 of 28th November, 1935, no new scholarships were awarded as from the beginning of 1935 with the result that there were only five scholarships in operation during 1935 and not eight as contemplated under the scheme of allocation already referred to. An additional scholarship, making four in all, was awarded on the result of the examination of June, 1935, but the number awarded in 1936 was reduced from three to two so that the deficiency incurred in 1934 has never been caught up. Assuming that the

scholarships awarded would have been for four years each

the Fund is now £480 better off than it would have been if

the original intention had been carried out.

3.

The fact that the surplus in the Fund has not

been used up as originally intended has already been the subject of correspondence with the University and I enclose

for your information copies of letters from the Registrar

THE RIGHT HONOURABLE

MALCOLM MACDONALD, M.P.,

&C., &C., &c.

ge 9

Page

Page

2

10

[X]

of 28th September and 17th October and a reply from

the Colonial Secretary of 28th October. In the last

letter proposals were made for the award of scholarships

over the next five years designed to use up the greater

part of the surplus on the assumption that the annual

grant of £300 would be received as in the past from His

Majesty's Government in the United Kingdom. As I

understand it, these annual grants have been regarded

as going into a fund which forms a reservoir for the

allotment of scholarships but since the number of

scholarships which could conveniently be awarded in

each year has varied the expenditure has not always

exactly balanced the income of the Fund. It happens

that a series of accidents has resulted in the

accumulation of a considerable surplus in the Fund

but I think it most undesirable that that should result

in any curtailment of its income and I trust that you

will agree that the surplus should rather be used, as

was approved in principle by Sir P. Cunliffe-Lister in

his despatch No. 20 of 16th January, 1935, for the

purpose of increasing the number of scholarships to be

granted.

In any case I submit that the present would be

a peculiarly unfortunate moment for the disappearance

of this annual grant. A determined effort is being

made to bring the University's aims and work into closer

conformity with the conditions and needs prevailing in

Hong Kong and in China: it would, therefore, be

regrettable if temporary cessation of payments by His

Majesty's Government were to give the impression that

it no longer possesses their support and interest to

the same extent as in the past.

age 10

age 10Page 11

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