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meet the existing deficit due to the fall in silver which has halved the salaries of the Staff, and provide some scholarships. The Hong Kong Government which now gives a very heavy subvention ($ 350,000
unwilling that a new faculty (ż.g. Chinese) should be started unless assured that it will be self-supporting.
It is surprising to me that His Majesty's Government has failed to recognise the immense potential importance of the Hong Kong Univ- ersity for promoting British influence and trade in China. Properly used there is no other agency which can compare with it. In refer- ence to the questions (noted above) from the Secretary of State, I have conferred with Professor Forster (Education Branch of Arts Faculty, Hong Kong University) and with Mr. Silcock, Hon. Secretary, University China Committee, and I submit the following suggestions:-
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That the Secretary of State should use his influence to induce the Empire Marketting Board to recognise the importance of the University for British trade in the Far East and provide a certain number of scholarships for Chinese students from China to Hong Kong, and enlarge the engineering faculty, which at present has about 80 students.
That he should also use his influence to obtain a grant from the Colonial Development Fund to meet capital expenditure, (extension of buildings &c.,)
Also to obtain out of the £200,000 allotted to the Univer- sities China Committee a certain number of scholarships for Hong Kong graduates from the mainland of China to British Universities*, and to be attached to industries here.
Firms in Germany and in America gladly attach Chinese as learners, and so get orders for machinery &c., on their return. Very few British firms have done so, fearing they might divulge trade secrets!
Valuable assistance to Chinese graduates who wish to come to England for a post graduate course would be afforded if steamship lines would give free (or greatly reduced) passages to students coming to England, especially in the off-season when passengers are few. The Blue Funnel Line have very generously done so. The P.& O and Ben lines (cargo vessels) could also be asked.
Another matter which I think might appropriately be taken in hand by the Universities China Committee in association with the China Society, is the provision of a Hostel or Club for Chinese Students in London. They are as a rule quiet law-abiding youths who give little trouble, but they (like Indians and Africans) re- sent being put under control and regulations. A Club with a few bedrooms available for new arrivals, or short periods, but not far ?r for permanent residence would probably be the best. Mr. Silcock' thinks the China Committee might have its offices in the same building and this would reduce the cost. He estimates the capital cost at £6,000, as a minimum.
The Hong Kong degree is the only one accepted by British Universities. Its high standard is recognised.
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