(though, wilers I

am mistaken, one of these is "central for export it in allowance, etc, which is in cutter a different category)

X

m•W_t, I Wallace

My Sidebotham

17

If I felt a good deal of sympathy with Hong Kong in their isolation a year ago (para. 2 in my minute of 19.7.48), I feel more now. They submitted in February the general plan for the rehabilitation and development of the University for which we had asked in (75), together with, on the one hand, the case which we said would be needed if there were to be any hope of C.D.W. assistance, and on the other two specific applications for such assistance; they are now likely to be told that one of these applications has been turned down and that the only chance of anything but a negative decision as regards C.D.W. assistance generally must depend on a further review of the situation some time in 1950 after an I.U.C. delegation has visited the Colony. This further spell of uncertainty will be more trying since the ingenious scheme at (2) for making the H.M.G. grant and their local resources go as far as possible depends on a favourable answer to their request for C.D.W. help, the various parts of the plan being inter-dependent.

But there is no getting away from the facts. The Grants Committee, advised by the I.U.C,has in effect the last word on C.D.W. applications. It will

take an extremely strong case from Hong Kong to move the I.U.C. and the Grants Committee, (a) because the funds are already so fully committed that, within the limits of the Higher Education allocation, the money could only be taken at the expense of other projects (Mr. Adams minute of 5.4.49), and (b) because of the perfectly reasonable objections in principle summarised in paragraph 3 of Mr. Bourdillon's minute of 4.6.48. It is clear that the only chance of the case at (2) finding favour with the I.U.C. and the Grants Committee lies in a first-hand report from the proposed I.U.C. delegation. Therefore delay for at least another 8 months or so is inevitable. addition there are the doubts expressed, particularly upon the validity of the assumptions on which the major revenue

ahs from the raising of fees are made (paragraph 4 of Miss Rustan's minute); Lir. Palmer's doubts as to the legitimacy of using H.M.G. grant in the way proposed.

In

and

I therefore agree that the only course is to proceed on the lines of paragraph 12 of Miss Rustan's minute of 15th July. But I should prefer to put her point (b) ahead of her point (a) and to give an indication that without such a visit there can be little doubt that the verdict would be unfavourable, and not to make too much of (a) though most of the queries in (a) should I think be put. It is of course most important not to encourage hopes that the I.U.C. delegation's visit will lead to favourable recommend- ations from the I.U.C. and the Grants Committee, and it would surely be wise to urge Hong Kong to begin to face now the conseque..ces of a probable negative decision by recasting the plan on the assumption that for the time being H.M.Gs Grant represents the limit of U.K. aid. The making now of such a revised plan would both save a lot of time if the ultimate decision of on C.D.W. aid after the delegation's visit is negative, and it would also make it much easier for the delegation itself to size up the situation and to judge the measure of development that would be possible if My C.D.W. grant is made.

It is not for me to comment on the proposed use of H.M.G's Grant, but looking back at paragraph 2 of Mr. Bourdillon's minute 4.6.48 I should have thought

/that

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