MEMORANDUM ON HONG KONG UNIVERSITY.
16
70
1947
In 1939 a committee set up by the Governor of Hong Kong considered that the failure of the University to fulfil the primary object of its foundation, namely the provision of a University of British inspiration for students from China, was chiefly caused by the paucity of the University's income and the Vice Chancellor came to the United Kingdom to urge upon H.M.G. the desirability of providing the University with financial assistance. Both the Colonial Office and the Foreign Office supported this approach but as a result of the outbreak of war the Governor was informed that H.M.G. fully appreciated the importance of the University in Sino British relations and realized that substantial financial assistance from outside the Colony would be needed for the original purpose to be maintained but that the outbreak of war made it impracticable to pursue, for the time being, the question of any financial grant from public funds in this country. The question would be reconsidered when circumstances were more favourable.
2.
The University suffered considerably during the Japanese occupation, both in loss of buildings and equipment and by depletion of staff, and in December 1945 the Secretary of State appointed a strong committee to advise him on whether the University should serve the local needs of Hong Kong only or the needs of students from China and other neighbouring territories. The Committee recommended that the University should be re-established on the broader basis and that it should be accepted as an Imperial responsibility, but that, failing adequate financial support from H..G. it should not be re-opened since it was min tained that the damage to British prestige entailed by an impoverished and under-equipped institution would be greater than the effect of a decision not to re-establish the University. The Committee's proposals had the full support of Mr. Bevin and Mr. Creech Jones but the Treasury, though sympathetic, considered that the U.K. financial position was such that the scheme would have to be shelved until the economic crisis had passed and circumstances were more favourable. The Treasury were not even prepared to agree to the scheme in principle and the most they would do was to agree to review the project at a later date.
3. The Governor of Hong Kong was informed accordingly and he was asked whether in view of this decision the University could carry on on a pre-1942 basis with- out help from H.M.G. The Governor replied that it would be a great mistake to wind up the University and that it should be carried on on a pre-war basis until such time as it was possible to expand it. He suggested, however, that H...G. should make a capital grant of £250,000 to help restore the University. This request was turned down by the Treasury but it was agreed that the capital and recurrent charges of this modified project should be borne on the Hong Kong estimates, and the Hong Kong Government accepted this. At the time of the 1948 Financial Settlement H..G. did however agree to make a grant of £250,000, the amount to be in addition to and not in place of the funds made available by the Hong Kong Government itself.
4. The proposal that the University should become an Imperial commitment has not been accepted by the Treasury and the Hong Kong Government and University authorities were fully aware of this fact when the decision to re-establish the University was taken.
H.M.G. have however assisted the University financially by :-
(a) a grant of £250,000 in the 1948 Financial Settlement;
(b) a further grant of £250,000 from C.D & W. Funds in 1950.
The University have recently submitted schemes to utilize this money and the proposed Endowment Fund is required to ensure that the University has an adequate income to continue its activities on the scale now planned.
5.
The University budget for 1951-52 shows a deficit of over øl million and that for 1952/53 is expected to be about lź million. The Hong Kong Government recurrent grant for 1951/52 is $1,550,000 and the Governor considers that any increase in it would only be agreed to by the Unofficial Members of Legislative Council with great reluctance and possibly with the condition that Government
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