54403/3/47.

Dear Grantham

Colonial Office,

Church House

Great Smith Street,

S. W. 1.

20th August, 1947.

Arad (5)

*24 02

V AI

C.D. W. Scheres - Construction of

& Institute of Medical Research.

4.

4

Whilst Belwyn Clarke was over here he had a discussion with Caine and Mahaffy, the Secretary of the Colonial Medical Research Committee, as a result of which it was agreed that an application should be drafted in the Colonial office for a grant from C. D. & W. funds, to be charged partly to Hong Kong's Q.D.& W. allocation and partly to Central Research funds, to meet expenses in connection with a proposed Institute for Medical Research to replace the Pathological Institute and Animal Houses.

2. Selwyn Clarke explained that the Hong Kong Development and Welfare Committee had asked him to see Caine at the last meeting which he attended of that body before his departure from the Colony. He pressed very strongly that a scheme should be made immediately to cover the cost of constructing a new Institute for Medical Research, and though we were not quite clear at the time that in fact he was in a position to commit the Government of Hong Kong to the scheme, we eventually agreed to go ahead with the preparation of an application on the understanding (a) that he would first of all discuss the project with you in London, and (b) that he would provide detailed information on which the application could be based.

3. We do not know whether in fact he did mention this scheme to you, but there is no record in the office of your ever having mentioned it to us or having expressed any view on it in principle. So far as (b) above is concerned we have not in fact been able to obtain anything like the detailed information that we should have to have, both as to the exact functions of the projected Institute and the estimated cost of construction in order to enable us to draft an application. On the latter point, all we have is an estimate given to us by Selwyn Clarke that $500,000 would be needed for the Institute and $250,000 for the Animal Houses. Obviously, however, we should need far more detailed estimates than this.

4. But more recently we have seen from MacDougall's telegram No. 1169 of the 18th July, that the shortage of building materials and the need for concentrating on rehabilitation of war-damaged property rather than on new developments has made it necessary to postpone a number of important projects, chiefly under the heads of Education and Public Health, which would involve large-scale new building. We take it that this decision includes the projected Institute for Medical Research and are therefore taking no further action here. If and when you decide that the scheme should be pursued, I am afraid that it would be necessary for the application to be initiated locally in view of our lack of detailed information.

SIR ALEXANDER GRANTHAM, K.C.M.G.

5.

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