Wt. 41936/587. 1/47. 50m. S. & S. Ltd. Wt. 47799/614. 2/47. 30m. S. & S. Ltd.

C.

Mr. Wallace.

Mr.

Mr..

Mr.

Mr.

54147/47

19/11/47 at mce

Permt. U.S. of S.

Parly. U.S. S.

Secretary of State.

Your Reference...

L

52

2014: 1947

DRAFTSAVINGRAM

GOVERNOR,

HONG KONG.

(46)

FURTHER ACTION.

Copy to:

Mr.D.R.Serpei, 0.B.E.,

Treasury

1.

No&$2

No...Saving.

Personal from Mayle.

Your telegram No.1592.

Hong Kong University.

Contents of your telegram were

communicated to Sloss and discussed with him.

2. It was at first thought that there was

possibility of meeting capital rehabilitation

expenditure of H.K.$4,000,000 by grant from

central C.D. & W. allocation for higher education

in the Colonies. C.D. & W. assistance is not

however available for rehabilitation.

3. Approach was then made to Treasury for

assistance from H.M.G. suggested in paragraph 4

of your telegram. I am very sorry to say that

this has been unsuccessful. H. M.G.'s policy at

present is of necessity drastic reduction of

overseas expenditure and in these circumstances

Treasury feel that singling out of Hong Kong

University for special capital assistance from

the U.K. cannot be justified. There is however

no objection to the capital and recurrent charges necessary to re-establish the University being borne on Hong Kong Estimates and we should

be prepared to face consequent repercussions, any, on Hong Kong's general financial situation

if

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