NOTE OF A MEETING IN THE SECRETARY OF STATE'S ROOM AT 10 A.M. ON 27th JULY, TO DISCUSS THE ESTABLISHMENT OF AN ENDOWMENT FUND FOR
THE HONG KONG UNIVERSITY
Fresent:
Secretary of State in the chair.
Sir Arthur Morse
Sir Man Kam Lo
Mr. Sloss
Mr. Paskin
Sir C. Cox
Members of Executive Council.
Late Vice Chancellor Hong Kong University.
Mr. Sidebotham
Mr. W. Adams.
Mr. Palmer
Mr. Hall.
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The Secretary of State opened the meeting by welcoming the members.
Sir A. Morse said that the problem of establishing an Endowment Fund was a difficult one. Hong Kong would prefer to do this without having to come to H.M.G. for assistance but he doubted if this was possible without some gesture by H.M.G. There was a feeling that H.M.G. had done very little for Hong Kong and one reason why H.M.G. "hangs back" was thought to be the question of the retention of the Colony. Any gesture by H.M.G. would have a good psychological effect. They had always thought that they would get some financial assistance for the University and the various committees had all recommended such assistance. If they were not to get any financial help then there was no point in further capital expenditure as this would merely increase recurrent expenditure. He had been Treasurer since 1936 and had never been able to see any way out of the University's financial difficulties.
Mr. Faskin said that H.M.G. had allocated £2 million for the University and agreed to a loan of £300,000 for the airport project and these were indications of our faith in the future of the Colony.
Sir M.K. Lo said they were grateful to the Secretary of State for agreeing to meet them. The officials and people in Hong Kong realised the role that the U.K. played in world affairs and the big financial burden this entailed and the further burden arising out of the rearmament programme. Sir A. Morse had made it clear that they did not wish to add to this burden but people in Hong Kong considered that the University served a much wider area than the Colony itself. The University must not be allowed to curtail its activities and once they could establish an Endowment Fund it might be possible to find sufficient money to keep the University going properly. Mr. Sloss knew about the pre-war Committee and Sir C. Cox about the 1945 committee which had pointed out that it was no use re-establishing the University unless it could be done properly on a sound financial basis and able to maintain its status as the finest University in the Far East. Then there was the report by Dr. Mouat Jones and Mr. Adams which had recommended that an Endowment Fund should be started and had suggested how this should be done. We must recognise that there were elements in Hong Kong, and its Communist press, who tried to run down British prestige and there was already criticism about the Hong Kong Government's annual contribution on the grounds that the University catered for many who did not belong to Hong Kong itself. He did not wish to give the impression that they were trying to get money from the U.K. so that they would not have to contribute any themselves. They would prefer to raise the money locally, but this could only be done if H.M.G. agreed to contribute also. If the Hong Kong Govern- ment were to increase the annual subvention there would be a demand for greater Governmental control over the University which would thus lose its independence. He assumed H.M.G. were assisting the Malaya University and the Hong Kong University also deserved help. Sir A. Morse said that he thought that 60% of the registered medical practitioners in Malaya came from
/Hong Kong