CO129-507-1 Proposal to dispose of Boxer Indemnity funds- claim by Hong Kong university 21-12-1927 - 24-7-1928 — Page 149

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Institution has, in fact, now reached a point at which either

additional sources of income must be found or expenditure

must be reduced with consequential reduction of its activities.

In my despatch of the 18th May, 1927, I

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explained that the present financial position of the

Government of Hong Kong is such that it cannot increase

substantially its grant to the University. I added that it

would be difficult, if not impossible, to raise large local subscriptions. I must here explain that the decrease in the

University's income is not due to any considerable falling

off in the enrolment of students. Since the anti-British

boycott of 1925 the enrolment has stood firm at a figure which ranges between 290 and 300; and the fee receipts during

the current year are actually in advance of what was collect-

ed last year. But the University endowments are largely

invested in local mortgages, and, as outstanding mortgages

have been paid off, it has been found impossible to reinvest

the capital at the same high rate of interest which was

previously obtainable. In this way the University's annual income has already been reduced by not less than $20,000 and this particular difficulty is likely to continue and even to

increase.

4.

I have already addressed you with regard to

the debt that the Central and Provincial Governments of

China owe to the University on account of scholars sent by them to the University on the basis of scholarships which were not paid. This debt amounts to $114,690. Most of the scholars concerned have left, and new scholars are not

being admitted on this basis.

5.

The principal object with which the Hong Kong University was, with the approval of His Majesty's

Government