The blyd was
of leave whe thè
8/. reluned
PŘ.
MinBahu.
17
Which that Saff will wish to discuss thes drafti with M.Zayd during any absencs.
23.8.
Taken 1
T.R.
The Secretary of State discussed the Report with Mr. Sloss and myself the day before yesterday. His instructions were that a further memorandum should be prepared to assist him in reaching a decision and to accompany his letter to Mr. Bevin and the proposed approach to the Treasury, bringing out more clearly than is brought out in the Report (a) the probable size of the University's student body and the Froportions in which it is estimated that this is likely to be derived from China and the Colony re- spectively; (b) the proportions in which the capital and recurrent expenditure involved should properly be derived respectively from funds within the Secretary of State' sphere (either Hong Kong revenue or C.D.W. funds) and from a Treasury grant in which the interests of the Foreign Office rather than the Colonial Office will be more directly affected. Under (b) the Secretary of State would also welcome any comment on, or amplification of, the financial sections of the Report.
In view of Mr. Lloyd's and Miss Ruston's absence on leave until the 16th, together with Mr. Sloss's absence in Paris until the same date, the Secretary of State preferred to postpone further action on the matter until Mr. Lloyd's return when he would like it to be taken up again with him at
once.
Mr. Sloss will submit written data on which (a) can be based, and he is willing to assist in estimating (b). Perhaps Mr. Lloyd, Mr. Caine, Miss Ruston and I could meet, with Mr. Sloss, as soon as possible after the 16th to settle the lines of the memorandum? Copies of the Report have now arrived from the printer and I suggest (i) that in the meantime the draft of the Secretary of State's letter thanking the outside members of the Committee (second draft on the file) might be re-submitted forthwith, (ii) that copies of the Report should be sent to members, who will be wondering if it has been printed and received, and (iii) that the copies for Sir Mark Young (A in Miss Ruston's minute of 20/8) should also go out now by air bag; those for the recipients listed at B in Miss Ruston's minute should no doubt wait until the Report has been sent to Mr. Bevin. In the meantime the Secretary of State agreed that I should mention to Sir Humphrey Prideaux-Brune
/that