Note on present position regarding

Hong Kong University.

(20th December, 1947)

56 se

The Secretary of State last saw this file between the

15th and 20th August (see minutes), soon after we had received

the Treasury's letter of 11th August at No.37, saying that

the question of the grant of direct financial assistance from

the United Kingdom to the scheme for rehabilitation of the

Hong Kong University on an extended basis should be deferred

owing to the crisis.

With the Secretary of State's approval, this view was

accepted here, but in accepting it at No.40 we asked the

Treasury to give assurances (a) that favourable consideration

would be given to the proposals as soon as the financial

situation should improve, and (b) that if we were able to

find funds from sources open to the Hong Kong Government

towards meeting part of the cost of the re-establishment of

the University, which was to have been met from United Kingdom

funds, any such expenditure would be repaid from United

Kingdom funds at a later date. The Treasury replied on

12th September that they were unable to give such assurances

(No.44).

In September-October, Dr. Sloss, the Vice-Chancellor of

the University was in this country, and as a result of

discussions with him the personal telegram at No.45 was sent

to Hong Kong offering to approach the Treasury for a small

token grant towards the cost of re-establishing the University

on the 1941 basis, since Dr. Sloss had expressed the view

that even this limited assistance from the United Kingdom

might attract considerable local Chinese contributions.

The Governor replied (No.46) that he did not think such

a token grant would provide a greater incentive to local

contributors.

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