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to restore Hong Kong University, with the implication that we are uncertain of our position in Hong Kong and in the Far East, and uninterested in the commerce of ideas.

The development of higher education facilities in British colonial areas in the Far East, particularly the establishment of a University of Malaya, will reduce the proportion of students coming from overseas to Hong Kong. Our conception of the central· purpose and justification of the University, however, implies that, it should revert to the function envisaged for it in its earliest days by Lord Lugard, and that it should especially attract both undergraduate and postgraduate students from the mainland of China. We recommend in our detailed suggestions that there should be a generous scheme of scholarships to Hong Kong for students and research workers from the mainland and appropriate hostel arrangements to minimize the difficulties created by the high cost of living in Hong Kong; we have taken this main purpose into account in defining the scope of teaching and research to be undertaken at the University, and regard it as a basic principle that all staff appointments should be open squally to British and Chinese. We repeat, however, that in final analysis it is not scholarships or other material provisions or the particular range of teaching that will attract Chines students to the University! and ensure its widening influence in China, but the quality and standard of its work.

6. We have, in accordance with our terms of reference, reported (in Appendix d.) on the immediate needs for restoring higher Education facilitis in Hong Kong. Action on the se emergency proposals could be taken without pre judice to the major decisions about the ultimate fate of the University; further action, however, cannot be taken until a decision is made on our main recommendation.

7. In the second part of our report, we elaborate the arguments for our main recommendation and have set out in appendices:

(a) an outline of the scope of studies and staff requirements

of the University.

(b)

(c)

an estimate of financial requirements.

changes recommended in the constitution of the University.

(a) a report on aotion taken towards meeting immediate needs.

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