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invariably return to China as at least potential agents for American goods. If the University of Hong Kong is allowed to decline for want of support, or even to close down altogether, very few Chinese students will go to Great Britain for the Universities' China Committee to befriend.
17.
The University's Vice-Chancellor, Mr. W.W. Hornell, C.I.E., will be in London about the middle of June. I sincerely hope that His Majesty's Government will not attempt to arrive at any final decision as to the disposal of the Indemnity until r. Hornell has been given a hearing. Meanwhile, I repeat that a grant of £500,000 exclusive of £100,000 for scholarships, is the least amount on which the authorities of the University could proceed to found a Chinese Faculty and to do something at the same time to strengthen the Institution as a whole. I consider that both these developments are essential for the continuance of Hong Kong as a centre of British influence and commerce in China. The general uncertainty with regard to tariffs and other matters which now prevails in Shanghai and other ports in China, is making Hong Kong more than ever vital to British trade in that country and indeed to the Far East generally.
18. Behind all the feuds which are still distracting China there stands ever the ceaseless conflict between old China and new China between
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