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(c) E.M.0. are prepared to make an interestetree Joan to Rong Kong up to a maximum of £3,500,000. te supplement funda available to Bong Kong for the construction of the projected international airport at Deep Bay. (For your
information
*1 the funds available to Hong Kong'' would include the sum`raceived by Hong Kong if Kal Tak aerodrome vera Bold plus the £500,000 to be met from E.K. loan funds, referred to in paragraph 25 of your despatch No.292.
(11) The terms of the loan will need to form the subjout of further discussions and in particulaz 3.1.0. would require ropayment of the loen in an appreciably shorter period than the 50 years suggested by you).
(d) E.M.G, are prepared to make a free grant of £250,000 3o the Hong Kong Univeraity. (The precise use to which thet om is to be applied would be the subject of further discussion between the two Goverœbenta.)
u As regards expenditure incurred on goods supplied to Hong Kong by H.M.G. after the civil government had been rø-establie bed, as you are aware hitherto arrangemente have only been made for the Hong Kong Government to pay over to H. M. G.
the cash receipta from sole of the atores. H.M. G. now feel (though they are not repeat not disposed to adopt an uncompromising attitude in the matter) that the time has come to consider further the apportlowesgut between Hong Kong and H.M.G. of total sxpenditars incurred. They therefore consider that further discussions should take place between B. M. G. act hong kong n the better and a further communication on this subject will be sent as soon as pasalble.
5. The proposals in your despatch No.292 for assumption by R. M. G. of certain liabilition were fully considered but in the creuantcosce referred to in peragraph 2 H.M. G. regret that they did not feel able to meat your request that they should buk over the responsibilities. Liated in your despalok.
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6. I trust that you will be able to inform me in the nost future of your acceptance of His Majesty'a Government'æ power which I should emphasise I regard as gererous in present airouue teco4u. It is in my view qusential and you will no doubt agree that the publin anngapoement to hong kong as to the Aotails of the settlement should be locusd to coincide with that La Malaya which as you will observe from my telegram No.457 must be made bogpro April 27th. This telegram is therefore boing followed by another setting out a draft public announcement for libog Kong on Taich I should be gluteful for your early observations. I am sure that I ceb rely on you to make every effort to ensure that H. M. G.'s aation in these difficult times (the gravity of which have not parhaps always been fully appreciated) shall be taken by the population of Hong Kong an evidence of goodwill which 36 is in fact intended to be.
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