which we had earlier suggested to Hong Kong
they should bear, without prejudice to ultimate
arrangements for financing the cost of the
airfield) is the best advice available to
us and we think it should be accepted.
5. The sum is admittedly comparatively
small, but it would be very difficult for
Hong Kong to find the money. Were they forced
to find it by a refusal on H. M. G. 's part to
make this small first advance from the promised
loan, their desire for a loan on the London
market, already voiced, would be stimulated
and their reluctance to contribute towards
the cost of the reinforcement of the Colony would
be strengthened; whereas, on the other hand,
we may hope that a readiness on H.M.G. 's'
part to make this advance on the promised loan
may have a good psychological effect on Hong
Kong's consideration of the cost of the
reinforcement contribution,
On these grounds
it would seem to H. M. G. 's advantage to provide
£25,000 on the 1950/51 Estimates and we propose this.
(b) University.
6. For the current year (1949/50) provision
has been made for £150,000 out of H. M. G. 's
promised grant of £250,000 (vide the letter
from Bryant to Russell Edmunds of the 18th
January referred to above).
7. In despatch No. 30 of the 15th February
1949 the Governor of Hong Kong set out proposals
for the rehabilitation and development of the
University
(2)
93