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Mr. Creech Jones also pointed out that considerable

public interest has been worked up over the proposal to

re-establish the University on an extended basis so as to

provide facilities for students from foreign countries,

and that a complete abandonment of the scheme will lead to

severe criticism as soon as the present difficulties are

a little less in the minds of people. He feels therefore

that we should do anything that is possible now to ensure

that there will be no delay in bringing the extended scheme

into operation when the situation permits. We accordingly

propose to examine, in conjunction with the Governor, whether

funds could be made available from any other sources open to

the Hong Kong Government, including C.D. and W., towards

meeting, in the initial stages, that part of the cost of the

re-establishment of the University which was to have been

met from U.K. funds on the understanding that any sum or

Afisible for repayment sums so made available will be repaid from any grant

is subsequently made from U. K. funds. This, I suggest

eminently reasonable as the money in question would

represent the cost of providing facilities for foreign

students, which is not Hong Kong's concern. I should be

glad to know whether you would agree to this understanding.

There is one further point which I should like to

will make at this stage. I should like to know that you agree

that our acceptance of the proposition that the University

scheme must be deferred on account of the crisis will not

necessarily commit us to the postponement of other projects

which we may find it necessary to put forward for U. K.

financial assistance to Hong Kong e. g. the airport, or

e.g.

possibly a housing or slum clearance scheme, which might

be recommended as the result of Sir Patrick Abercrombie's

visit to the Colony next October.

Lipe

I should be very grateful for your views on the points

raised in the three preceding paragraphs. I suggest that

when they are satisfactorily settled, the matter might then

/be

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