108
would be
The effect of this purposal that
£250, som provided by HING
would be invested in the Comm and wood wow m
whalilitation
(& meet Item 5-41 the
Schedule 1 Expertitive wonder the Rehabilitation Loon
grant & Hong Kup University), while the Hap Ke Gvernment world
before we could accept the analysis given
in your despatch of the University's
financial needs. We should like an
That
estimate of the effect/r
eff t/raising the fees
to 50% over the 1941 level would have on
the number of students, and how any fall
in that number would in turn affect the
University revenue. Your despatch assumes
an increase in the number of students,
and on that the plans for an increased
number of lecturers in paragraph 10 are
have been expresser wo feet Some doubts about the
based. We
justification for these proposed
appointments, and think further consideration
should be given to whether the uncertain
situation in China, the institution of the
University of Malaya, and the deterrent
effect of increased fees will not between
them keep down the number of students
below the level at which the expansion
envisaged would be justified.
3. We note that it is proposed to
invest H.M. G.'s grant in the rehabilitation
10
loan which will be repaid to the
University by equal annual drawings of
capital and interest over fifteen years;
showed
and that these amounts will be used to
meet the greater part of the annual cost of
the increased staff and expenses. The
actual result appears to be that the
£250,000 invested in the loan could be
used immediately to meet Item 5-4 of the Schedule & Expenditure under the
Behabilitation Loan gehedule - Grant to
Hồng