[
12
fact justify such expansion of staff;
d) the doubt as to how the increased
annual expenditure could be met in
15 years' time when the grant sould be exhausted.
5. The use that is being made of the Hong Kong Government grant of £250,000, which was to be used towards rehabilitation, does not, I think, call for detailed comment since we are not in a position here to examine critically the re-establishemtn expenses listed in Enclosure A.
6. As Mr. Robison has pointed out, no provision is made for the repayment of H.M.G.'s interest free loan made in 1946.
II
7. The building purposes for which C.D.W. aid is proposed and which are all based on pre-war schemes are:
(a) the conversion of the Tung Wah Eastern Hospital into a teaching hospital to supplement clinical facilities at a cost of
£50,000
(b) the building of studios and class rooms for the teaching of architecture at a oest of
£11,850
(a) the building of accomodation
for the training of teachers at an approximate cost of
£20,000
(a) the building of a residential
hall for men at a cost of
£67,500
(e) the building of a block of eight flats for senior staff at a cost of
£40,000
(f) the building of a block of twelve smaller flats for junior . local staff at a cost of
£30,000
These total
£219,350
8. The University's proposals under I and II are inter-dependent.. They propose to spend H.M.G.'s grant of £250,000 on staff and wish to apply for a grant of £219,350 for buildings. (The figure ȧn the end of paragraph 13 of the despatch seems to be a mistake.)
9. In connection. with the proposed application for a grant under C.D.W., Mr. Sloss, in 1948, submitted an informal application for a grant of £255,000. Preliminary consideration by the Executive Committee of the Inter-University Council and the Colonial University Grants Advisory Committee suggested That they were unlikely to support it on the grounds that the proposed development was not, in the main, intended to meet the local needs of Hong Kong. This
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