173
the University in the Colony's Estimates for 1921. 850,000 should be regarded as the fired yearly grant, which I proposed in my telegram of 19th August to raise to this sum as a minimum: $2,000 is due on account of payments for Yunnan scholarships: interest at 6% om £700,000 will amount to $42,000. There will thus be a balance of $106,000 on the vote. I propose, unless for some unforeseen reason it is necessary to limit the expenditure, to pay over £100,000 about the end of the year as a further instalment of the payment to the Endowment Fund, leaving $600,000 to carry interest during 1922, and to liquidate the debt by similar payments of between $100,000 and $200,000 in following years, unless the Government finds itself in a position to be able to pay over the whole balance without inconvenience at an early date. If this earlier payment can be made it will be desirable to make it in the interests of the University as that body will probably be able to invest its funds locally at 8%. The Finance Committee of the University has suggest- ed that the Government should pay 8% on the outstanding balance, apparently on the ground that they could obtain that rate on mortgage if the money were paid over to them at once. I do not consider that this suggestion is reasonable. Recognition by the Goverment that this balance is a debt to the University practically converts it into a first class Government security on which 6% is a reasonable rate of
interest.
6.
As already stated an appeal will be made to the public for donations to the Endowment Fund and for special purposes. No formal appeal has yet been issued but I am glad to say that two sums of £100,000 each have already been promised, one by Mr. Nemazee towards the Endowment Fund and one by Sir Robert Ho Tung for the provision of Engineering Workshops, and I have hopes of receiving a
similar
:
No comments yet.
Private notes are available after approval.