28
Treasury Chambers,
Great George Street.
S..1.
Z
9th May, 1947.
(18)
IF 16/09
Dear Lloyd,
We have been considering very carefully the proposal in your letter of the 12th April to Gilbert regarding financial assistance towards the re-establishment of Hong Kong University.
We fully recognise the force of the argument that as an investment in goodwill and understanding expenditure on this project would be a good thing if our resources could afford it. On the other hand, we are very seriously concerned about our accumulating liabilities in the Far East, and until we know more clearly what they will ultimately amount to and can establish some order of priority related to the amount we can afford to provide, we are naturally hesitant to embark on any large expenditure which does not appear to be of the most urgent and vital character.
Whatever view we may reach on that aspect, however, there is one rather fundamental question about the proposal, the answer to which is not at the moment clear to me. We have obtained from the Colonial Office a statement summarising the assurances which have been given from time to time about the future of Hong Kong. It seems to me that these assurances are all of a rather short-term character and donot really dispose of the major question whether it is H.M.G's intention to endeavour to hold on to Hong Kong for as long as possible, if necessary resisting considerable pressure from China to give it up. Can you throw any light on this aspect and can you say whether, if we had to yield
Sir Thomas Lloyd, KCMG.
up