.G.R.
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we are prepared, on the understandings there mentioned, to agree that it is proper for the Hong Kong Government to seek to re-establish the University, and we would be prepared to accept propriety of the necessary capital and recurrent charges being borne on the Hong Kong estimates. This might have repercussions on the general financial situation in Hong Kong which we should be prepared to face as a part of our general relationship with Hong Kong.
f. I do not know how far the Governor has thought of other sources of funds. As we said at the meeting, the readiness of local people to assist financially is some measure of the local keenness for the restoration of the University. We would, I think, accept the contention that it would not be proper to raid the University's own capital to any great extent for the purpose, since that capital is clearly needed to help to keep the University going after its re-establishment. It occurred to us that the restoration of the University would be a proper use of some of the War Memorial Funds. Moreover there might be hope of some private benefaction.
9. In regard to Hong Kong governmental resources, Serpell is about to write to you on the estimates, suggesting amongst other points, that Hong Kong might turn to the C.D.W. for some of the development projects which they are at present proposing to meet out of the loans. This might enable them to release some of the proceeds of the loans for the re-establishment of the University.
♫ As regards the continuing recurrent expenditure, we note that the annual grants which the Governor considers are needed, are at about the same level as the Advisory Committee's estimate of the recurrent expenditure of the larger scale project. I gather that you consider that this increase is largely due
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