UNIVERSITY OF HONG KONG.
Eliminating endowment of chairs
required is:
P
in round figures the amount
92
Capital........£700,000
Recurring......£100,000 (a higher figure than
Caine took).
In ten years the total would be £700,000 and £1 million. The proposal is that £1,700,000 should be divided more or less equally between (1) Colonial and Colonial Development & Welfare funds.
(2) Treasury.
It was suggested (i) that Hong Kong should give about £60,000 a year (in place of £30,000 in the last complete year before the Japanese invasion), i. e. £600,000 in 10 years;
(ii) that the C.D.W. fund should be asked to
make a grant of £200,000 towards capital expenditure;
and
(iii) that the Treasury be asked to give a grant of £500,000 for capital expenditure and an annual grant of £30,000 i.e. of £300,000 in ten years.
(In estimating the deficit in maintenance charges at £100,000, I have taken the Report total of £142,000 and deducted endowment interest at £11,500 and fees at an increased total of £30,000).
There is a reasonable chance of the capital charges being incurred within ten years, but estimates of recurring charges are based on a maximum that would be reached only towards the end of the ten year period. The increase would be slight in the first two years and would gradually increase up to the sixth and seventh year of the 10 year period.
Endowment of chairs would of course increase the total of capital charges and would decrease the recurring charges by about £10,500 a year.