the proposal in my letter of the 23rd August

that we should now attempt to find funds from

sources available to Hong Kong (including C. D. & W.

moneys) for the purpose of making a start at least

with the realisation of the Committee's recommendations,

on the understanding that any such expenditure will

be eligible for repayment from any grant subsequently

made from U. K. funds when the financial situation

here improves.

We are asking the Governor by telegram for his

views on whether local support would be forthcoming

on a substantial and generous scale if we were able to

make an announcement to the effect that H.M.G. view

the Committee's recommendations with sympathy; that,

although their present financial situation precludes them

from assisting the University financially for the time

being, they will be prepared to give the question further

favourable consideration when the financial situation

here improves; and that meanwhile certain sums (if in

fact we succeed in finding any) are being found from other

sources, including C.D. & W. Funds, without prejudice to

an eventual grant from the Imperial Government. We will let

you have the Governor's views on this as soon as possible,

but meanwhile we would be grateful if you would consider,

in conjunction with the proposals in my letter of the 23rd

August, the possibility of our making an announcement

somewhat on the above lines, assuming the Governor's view

is that it would be likely to secure substantial contributions

from local private sources.

I am sending a copy of this letter to Orme Sargent.

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