CO129-406 - Public Offices - 1913 — Page 52

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Sir E. Grey is aware, Parliament decided and enacted

in § 7 (2) of the Finance Act, 1906, that they should be

applied in reduction of debt, this use being supported

by the fact that the money represents repayment of ex-

penditure originally met from the proceeds of debt created

for the purpose. It does not appear to Their Lordships

that there is any sufficient reason for reopening the

question thus decided. Should it be thought desirable

that a sum of £400,000 should now be spent from public

funds on the establishment and endowment of a University

in China as suggested, the most convenient and proper

method of finding the money would, in Their Lordships'

opinion, be to invite Parliament to provide that sum

by means of a special Vote in Supply as a Grant in Aid of

the University. The course suggested by the Secretary of

State viz. the interception of Indemnity moneys earmarked

to the extinction of debt would be contrary to all the

established principles of national finance, and it would

involve special legislation of a controversial character,

which Their Lordships could not undertake to propose.

It appears therefore to Their Lordships that the

proposul

Դ

proposal for a University in China under British auspices

must be separated entirely from all connexion with the

Boxer Indemnity and that only when thus separated can it

be properly discussed on its merits. The proposal can

then be shortly stated in the form of the question,-Is

it desirable that the British Taxpayer should be asked

to provide a sum of £400,000 towards the establishment

and endowment of a University in the centre of China.

In view of the many demands upon the available

resources of the Exchequer at the present time, of the

increasing requirements of Education in this country, and

of the many other services upon which a sum of £400,000,

if made available, could be usefully spent, My Lords

are inclined to think that the question thus stated

must be answered at once in the negative. If however

Sir E. Grey desires that the scheme should be further

considered in this form, My Lords will of course be

prepared to give the fullest attention to any arguments

which he may adduce in favour of an expenditure of

£400,000 on such a scheme from a Vote in Supply.

(Signed)

I am &c.,

Robert Chalmers.