TELEGRAM

To:--

Draft

*

File No.

1.6

*

SAVINGRAM

• The word Priority may be entered here, if necessary.

Governor, Hong Kong

Mr.

C.O.

Mr. Fairclough: 3/2

Hall 14/12

Repeated to:-

Mr. Palms rel

Jarmute

же

Mr. Robeson

Bir Adams

My Sidelothes Permt. U.S. of S.

Parly. U.S. of S.

Priority:-

Nil.

Reply urgently required.

Important.

S. of S.

Immediate. Most Immediate.

54947/1/4/50

Sent.

To be transmitted :-

No.

In Clear

hours.

..194...

Code

Cypher

Restricted. X Confidential. X

Secret.

Top Secret

and Personal.

Distribution:--

Further action:—

Wt. 15855/746 5M 6-48 Wa, & Co. 51/3 Wt. 29377/790 50м 11-48 Wa & Co, 51/3,

(4)

Your telegram No. 1135.

University Endowment Fund.

Suggestion in paragraph 2 of your telegram

under reference that endowment fund should be

invested in local public utilities has been carefully

considered. I appreciate advantage of this proposal

in that much smaller endowment fund would be needed

than if fund were invested in gilt-edged securities.

I am not, however, convinced that it would be prudent

to invest the whole of the fund in local utilities

nor do I consider it likely that I. ́.G. would con-

template contributing to fund unless their contribu-

tion were to be invested in gilt-edged securities.

Although the companies in which you

propose to invest money are utilities and therefore

no doubt reasonably secure investments, it seems to

ine unwise to rely completely on ther or on their

present high rate of interest continuing indefinitely.

I consider therefore that some part of the endowment

fund should be invested in really secure stocks such

As gilt-edged securities so that some income at

least is definitely assured. In all the circumstances

I have come to the conclusion that the prudent course

+

would be for £250,000 to be so invested. This

/would

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