. 2.
142
to be associated in Hong Kong with the denial of a comparable amount from Colonial Development and Welfare Funds. Public opinion would undoubtedly regard such action as giving with one hand and taking back with the other.
7. On the assumption that the grant from Colonial Development and Welfare Funds will be forthcoming, the Treasury Grant of £250,000 will be used to salvage what is possible of those recommendations of the Cox Report which have direct reference to the needs of the Colony. The increases in all costs which the Cox Committee could not foresee, make it certain that rebuilding and development on the scale contemplated by the Committee is for the present out of the question, but withfreedom to use part of the Treasury grant over a period of years to meet the costs of salaries and maintenance, enough can be achieved to give the University vastly improved status so that after a period of years it may reasonably expect an increased measure of local support. I feel that it would be rash to utilize the hole of the Treasury grant for capital development, which would involve increased recurrent charges which might be difficult to meet.
8.
Denial of aid from Colonial Development and Welfare Funds will necessitate the expenditure of the whole of the Treasury grant on the projects referred to in my paragraph 2, and the abandonment of other most desirable schemes of development. I feel bound to point out that His Majesty's Government has hitherto contributed nothing to higher education in Hong Kong, apart from a grant from the Boxer Indemnity Fund and some small amounts for scholarships, and I would urge that this Colony, which has been so much to the fore in the development of higher education, should not now, because of its initiative, be placed at a disadvantage in comparison with those Colonies which took no steps until they were assured of generous help from His Majesty's Government.
9. If a grant from Colonial Development and Welfare funds for the projects listed in paragraph 2 is assured, and if some part of the Treasury grant can be used to meet recurring charges, it will be possible to outline the Colonial projects that will become possible of achievement by reason of the Treasury grant.
X