63
3.
Capital Expenditure.
(a) £116,000 for repair of buildings and equipment
to be met from Hong Kong revenue. Major part oï
this sum has, however, been provided for by use of
this year's normal grant (your telegram No. 612)}
and the grant and interest free loan authorized by
the Treasury in February. It is estimated therefore
that not more than £50,000 remains to be found under
this head.
(b)
for
An application of £200,000 to be made under C.D. and W.
central funds (i.e. not from the sum allocated
separately to Hong Kong).
(c) Treasury to be asked to give a grant of £500,000 in
recognition of the imperial interest in the University.
Amounts for which it is suggested that Hong Kong should be
responsible are therefore £50,000 capital and £60,000 recurrent..
It is emphasized, however, that neither the capital nor the
recurrent sums will be required in full for some years
five to seven.
4.
Arguments for increasing Hong
(a)
Kong'contribution are
probably
the decreased value of the purchasing power of the
Hong Kong
(b) Assuring an increase in revenue the proportion of the
Government grant to the University in relation to total
revenue would not necessarily be doubled if the grant
were increased by 100%,
(c)
the general desirability of increasing both revenue and ·
H expenditure 3 Relevant factors are:
(a) the question of what the Hong Kong Government
would have to spend on the restoration and
maintenance of the University were it proposed
merely to re-establish it on pre-war basis.
(b)
the expenditure that would be necessary on
higher education in the Colony were the University
not:
disolved and its present income from endowments were
available.
15.
(35)