109
provide $347,300
a year Cowards
for 15 years recurrent development
expenditure
Hong Kong University whilst the
University receive $347,300 a year for
received
fifteen years from Hong Kong Government
revenues towards recurrent development
expenditure. We do not know whether
we could persuade the Treasury that
that procedure was in accordance with
the Chancellor of the Exchequer's
expressed wish that the grant should
be used for the rehabilitation and
development of the University. Even
if it were agreed that it does not
conflict in any way with the Chancellor's
wish, there remains the big difficulty
discussed in paragraph 12 of your
despatch that at the end of the fifteen
years the University's income would
suddenly drop by $347,300 a year, and an
alternative source of income would have
to be found if the additional staff were
(retained. If therefore the ₤250, room to be to be invested by the University so that
Can
the income eould be used to finance annual
development expenditure it would seem
to be wiser to invest in such a manner
to
as would produce a continuing, although
admittedly smaller, income which would
not cease at the end of fifteen years.
All these uncertainties add up
in our minds to a doubt whether the
University is not planning too boldly.
The new or widened studies which it is
proposed to introduce, as they are
outlined in your paragraph 11, are all
undoubtedly