(b) Recurrent and capital expenditure.
The Committee considers that in general it will be desirable to use central funds for capital purposes, but that it would be unwise at this stage to exclude finally the » possibility of financial help to some regions in the form of
In certain contributions towards recurrent expenditure. cases, the capital investment made in buildings, equipment, etc. might not be used to full advantage unless there were some initial assistance towards the cost of staffing and of those other services essential to the proper use of the resources provided; in other cases, some central assistance towards recurrent expenditure might prove to be an important instrument for securing local recognition of the staffing standards required by university work, for protecting the colleges from undue political control, and for ensuring economy
The Committee in recurrent expenditure by the colleges. considers that a system of expatriation allowances will be necessary in order to give the Colonial institutions access to the United Kingdom market for staffing, but recognizes that if such allowances are paid in whole or in part from central funds this will involve a commitment of indeterminate duration.
However
The Committee realizes that the use of any of the central funds for non-capital purposes raises the policy issue of the nature of the responsibility which His Majesty's Govern- ment has intended to assume in encouraging the establishment and development of universities in the Colonies. conditional and limited recurrent assistance may be, it may create expectations or entail moral commitments from which it will be difficult for His Majesty's Government to withdraw, particularly because the full burden of maintenance expenditure will be felt locally only towards the end of the decade when the capital commitments have been completed.
The Committee seeks guidance therefore for the purpose of its planning, on the question whether it is intended that all financial assistance from Imperial sources should cease at the end of the decade, or whether the possibility of à longer-term commitment has been envisaged.
Yours faithfully,
(Sgd.) WALTER ADAMS
Secretary.
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