10
You will see from my minute referred to above that when it was recognised that the activities of' the Committee might include taking action to terminate the services of at least two present members of the staff of the University, it was felt that in order to avoid any challenge in the future it would be desirable (a) for the Committee to be given legal authority, and (b) for it to be strengthened by the addition of Mr. Caine. I have spoken to lir. Caine, who has very kindly agreed to join the Committee.
An Order in Council was drafted some time ago by Mr. Hastings. It has been held up until now pending the receipt of a reply from the Treasury to our request for a grant or £100,000 to meet the University's commitments. It will be seen from (14) that the Treasury have agreed to a grant of £70,000 and a loan of £30,000. Almost certainly it will be necessary to ask for an increase in the amount of the loan in order to re-equip the University, but the grant of £70,000 will enable the obligations of the University to its staff for the period of the Japanese occupation to be met.
Paragraph 3 of the draft Order in Council has been discussed in detail with Mr. Sloss and with Mr. Hastings and re-drafted and I now submit it for authority for this Order to be made at the next meeting of the Privy Council.
I also attach a brief note for the Secretary of State on the purpose of the order to go to the Private Secretary when the formal request is mode to the Lora President of the Privy Council for the Order to be made.
I am sending forward the file in red because Mr. Morse is returning to Hong Kong within the course of the next two or three weeks.
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