55364/4/47
(38) on 54126/1/+6
Encl. 2
-re
- 7
46
If developed on the right lines it can be of immenso value in extending British influence in the Far East. It seems to me, therefore, that the payments of arrears of salary to its staff in respect of a period when they were interned and when the University had ceased to exist, are as much a matter for tho Imperial Government as for the Government of Hong Kong, particularly as the lattor had also coased to exist. Owing to the economic crisis in the United Kingdom it has not boon possible for His Majesty's Government to assist the University to re-establish itself in the manner which was originally hopod. The consequence has boon that this Colony has been compelled to carry an additional burden in order to provent the University from closing down. It does not soom right that they should be expected also to contribute to the University's finances in respect of period when their own revenue was cut off, and I trust that, on reconsideration, both this grant of £70,000 and the loan of £30,000 will be accepted as a charge against Imperial funds.
21.
The second commitment concerns the question of pay during the occupation period to Government employoos who wore not internod. Final proposals have now been submitted in my secrot dospatch No. 123 cf the 24th October, 1947, and if thosc are approved, it is estimated that the not cost will be approximately 9,500,000. Any amounts already received by way of roliof payments in Macao, China or elsewhere will be offset against any payments due under this scheme, and it is proposed that any excess should be written off, though there may be a few special cases whore the persons concernod can moct their obligations without difficulty. This will have the effect of reducing the not cost considerably but, oven so, $9,500,000 is a very large liability for a Colony of this size and it is onc which arises directly from the consequences of the occupation. Again I focl that it may rightly be regarded as part of the general cost of the war.
22. As has boon explained in paragraphs 9 and 10 of Sir Mark Young's despatch No. 48 of the 24th July, 1946, vory few Government buildings survived the period of enemy Occupation. Some were completely destroyed and most word looted to such an extent that only the shell of the building remained, all flooring, panelling, piping, electrical wiring and even the staircases having been removed. All drains, roads, paths, soawalls, etc. required extensive repair as they wore completely neglected during the period of occupation. A11 watorworks installations are in need of extensive ronowals and overhaul. The Kowloon-Canton Railway roquires completo re-equipment with locomotives and rolling stock. The track requires relaying and the tunnels, which had been damaged by British demolition chargos, have, naeded extensive repairs. The Colony was largely denuded of trees and an extensive re-afforestation programmo is an urgent necessity.
23.
A large proportion of this rehabilitation work has been completed, but much remains to be done, and it is not yet possible to furnish you with any precise estimate of the total cost. A statement is, however, enclosed, showing the amount expended up to the 31st March, 1947, on works of this naturo chargeable to loan, the estimated expenditure for the prosont financial year and a rough estimate of the cost of the work which will then still remain outstanding. It will be observed from this statement that repairs to Government buildings,
and the construction of now, ones to replace those destroyed, is expected to cost some $48,357,000. Miscellaneous public works, which include the reconstruction of drains, roads, paths, seawalls, ctc., will account for cxpendituro totalling $41,064,000, and the cost of the rehabilitation of the Railway will amount to $26,962,000. The Head Claims, and Compensation' requires some cxplanation. Of this item of $30,547,000,