Wt. 29446/552 9/46 50m. S. & S. Ltd.
C. O.
Mr.
Mr.
Mr.
Mr.
Permt. U.S. of S.
Parly. U.S. of S.
Secretary of State.
DRAFT.
in the Far East.
FURTHER ACTION.
180
It is not proposed that
there should be a strictly fifty-fifty divi-
sion of both capital and recurrent expenditure
but that the special United Kingdom grant
should cover a larger proportion of the
capital expenditure and a smaller proportion
of the recurrent, adding up to an approximate-
ly equal division of the total Government
expenditure involved over the first ten years.
In the more distant future, of course, the
Colonial contribution would become more and
more predominant.
In more detail, it is proposed that of
the estimated capital expenditure of £716,000,
£500,000 should be provided by a special
grant from United Kingdom funds and that
towards the estimated recurrent working
deficit of £113,500 per annum, H. M. G. should
contribute an annual subvention of £30,000
rising by six annual stages to £45,000.
We know full well how strained United
Kingdom resources are at present, but both
my Secretary of State and Mr. Bevin, who have
discussed it between themselves, are satisfied
of the necessity of re-establishing the
University, and we feel that the good results
which are likely to be achieved in the
improvement