51

contributors.

He also gave estimates of the sums

required to restore the University to its 1941 level:-

$4,000,000 capital and $1,500,000 annually.

He suggested

that the former sum should be met from United Kingdom

funds and the latter from Hong Kong funds.

This was put to the Treasury on 17th October (No.49).

But again direct U.K. assistance was refused, though the

Treasury conceded that they would not object to the capital

and recurrent charges on this limited project being borne

on the Hong Kong estimates and would be prepared to face

any consequent repercussions on the general financial

situation in Hong Kong. These decisions were conveyed

to Hong Kong in No.52 of 20th November, to which there has

not yet been a reply. In No.55 of 19th December we gave

the Governor some comments on the poor prospects of assist-

ance from the foreign expenditure side of the British

Council with reference to a suggestion made by the

Treasury which we passed on in No.52.

The present position is that we await the Governor's

comments on the possibility of Hong Kong's finding the

money for rehabilitation of the University up to 1941

standard and his suggestions for a public announcement

to be made simultaneously here and in Hong Kong. In

both respects we have had to set him a difficult task.

I am dyed for above information. It is all

now unfortunate operhaps incortable But I can't see what, in preses incun sterres offenses can be done

Acd. 231.2

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