subscription for this extremely important purpose.

The Secretary of State has expressed the hope that a

proportion of the income from the fund so created will

be applied towards the provision annually of an adequate

number of scholarships at the University for the benefit

of the general community of Hong Kong.

17

2. We think therefore that any announcement made by

you should be in similar terms, and if you agree this will

involve substituting for statement at end of para. 2 of

your telegram No. 812 :-

"It is estimated that assets available for Hong

Kong will be over $20 million. The Hong Kong University

has recently sought assistance from H.M.G. towards the

creation of an Endowment Fund of $16 million for the

University and after consulting this Government the

(28)

Secretary of State has decided that a sum of $12 million fee Affi

out of these assets/should be contributed by H.M.G

towards such an Endowment Fund in the confident expectation

the

that the balance of $16 million required will be raised

by local subscription for this extremely important

purpose. The Secretary of State has expressed the hope

that a proportion of the income from the fund so created

will be applied towards the provision annually of an

adequate number of scholarships at the University for the

benefit of the general community of Hong Kong.

The remaining Japanese assets would be available

for such other purposes as would benefit the whole community

and the Hong Kong Government proposes to set up a Committee

on which there would be an unofficial majority to advise it,

in consultation with the Secretary of State, as to how best

the money could be used".

3. We thought it better to omit words "as Hong Kong

thought fit" as although we shall probably not wish to

object to any proposals you may make about the disposal of for the benefer of the community generally balance,

the balance, the Secretary of State will still wish to be

consulted.

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/4.

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