A Voli

that

X 2 concet.

pan 3.

3

do

not

think

the

plan

par 5.

Mr. Adams

see.

University

"ferreml

ما

submit

need

34

ank

drould certainly

PNA, Annitage

Suitto

27/11

The arrangements set out in No. 35 seem to me to be generally satisfactory, subject to confirmation by the D.G.C.A. that adequate arrangements have been made by Mr. Worlledge, during the course of his visit to Hong Kong, to enable him to certify accounts in support of the issues from U.K. funds.

is

The position in so far as we are concerned, that a grant of £500,000 will be made as to one half

from the Vote for Colonial and Middle Eastern

Services, and to one half by means of a scheme under

C.D. & W. Acts, and for accounting purposes this

In other

assistance must be viewed as a whole. words, issues from the one source must be made concurrently with issues from the other, and as a matter of practical convenience, the whole will have to be included in one statement of accounts from the university. There is no objection to this statement of accounts being subjected to audit by the university auditors, provided that it can be submitted to the Governor of Hong Kong together with the auditors report in such form as the Director of Audit can place such supplementary examination on it as may be necessary, and the D.G.C.A. can certify it in compliance with Parliamentary requirements. Perhaps the D.G.C.A. will comment on this possibility in the light of any report which may have been received from Mr. Worlledge.

Ι

As regards "X" of Mr. Fairclough's minute, do not think that any part of the grant in the Colonial and Middle Eastern Services, could be issued in advance of approval of the overall plan, and of the making of a C.D. & 7. scheme to cover the share of the cost to be met from that source. There is provision of £150,000 in this year's vote and if any part of this is to be issued before 31st March, then it is a matter of urgency to agree with both the Governor and the Treasury, the form of

If there is the scheme to be made to back this. any likelihood of this not being possible, then it is necessary that we should take up the point with the Treasury before the end of December, so that the provision in the 1951/52 estimates can be amended to provide for the whole of the £250,000, which has been promised from the Colonial and Middle Eastern Services Vote.

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