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

a.

294

Mr. W. I. J. Wallace

Mr. Mangler Wa

Mr.

Mr.

Mr..

DRAFT.

SIR ORME SARGENT, K. C.B.,

K. C. M. G.,

FOR IGN OFFICE.

FURTHER ACTION.

54147/47.

Permt. U.S. of S. Parly. US. S.

Secretary of State.

Your Reference..

(43)

For Sir Thomas Lloyd's signature.

Re-establishment of Hong Kong University

Dear Sargent,

Thank you very much for your letter

of the 10th September signifying your

agreement with us in our attempt to secure

Gilbert's assent to three propositions

regarding the Hong Kong University scheme.

-

I am sorry to say that he has replied

that the Treasury cannot give us any

assurance of agreement to the scheme in

principle on which we might advise Hong Kong

to go ahead with it, using whatever funds

might be found, on an understanding of

reimbursement by H. M. G. later. The most

the Treasury can agree to now is a review

of the project next year. Gilbert further

says that in no circumstances could the

Treasury consider the provision, even

temporarily, of Colonial Development and

Welfare money for the purpose of educating

foreign students.

On the third proposition we referred

to him viz. that the decision to defer the

University scheme does not necessarily

comit

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