subject to Foreign Office views, that we must accept the Treasury view in present circumstances.
He, feels, however
that the abandonment of the scheme for an extended University will lead to severe criticism once the present crisis is over, and that, in the meantime, everything should be done to ensure that it will be possible to put the plans for the extended University into operation as soon as the situation
permits. I have accordingly replied, to Gilbert that subject
have had hain I to Foreign Office views, (which I am seeking) Mr. Creech Jones is prepared to accept the view that the scheme for the
extended University involving a grant from United Kingdom funds must go intò abeyance in present circumstances.
I am, however, seeking Gilbert's agreement to three propositions (a) that favourable consideration should be given to the
proposals as soon as the financial situation here
improves;
(b) that if we are able to find funds from sources open to
(i
Hong Kong Government including Colonial Development and Welfare money) 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, any such fussen ditu
eligible for
ment
will be repayable from any grant subsequently made from
U.K. funds.
(c) that our acceptance of the position in relation to the
University will be without pre judice to the consideration
of any other project which we may have to put forward for
direct United Kingdom financial assistance to Hong Kong e.g. the airport, or, possibly, housing or slum clearance
Whinn many be
schemes recommended as the result of the forthcoming
visit of Sir Patrick Abercrombie to the Colony in October
next.
I have not delayed my reply to Gilbert for this reference
to you, as I felt sure that you would be in general accord with
the above views, and I was anxious to speed up the decision on
the future of the University which has, by force of circumstances,
/been