CO129-567-12 Hong Kong University 24-1-1938 - 24-1-1938 — Page 109

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I met the other day Mr. J.R. Masson,

a Director in Hong Kong of the Hong Kong - Shanghai

Bank and of Butterfield and Swire, who arranged to

come and see me at the Colonial Office with

Mr. Morse (of the Hong Kong - Shanghai Bank) to

talk about the affairs of Hong Kong University.

Mr. Morse has for some time been familiar to us

as Treasurer of the University and Mr. Masson was

a signatory of the report of the local Commission

on the University in 1937.

Mr. Mayhew was able to take part in the

discussion when they called this morning.

Mr. Morse deposited with me three letters of

introduction which the Governor had given him to

the Secretary of State, Sir H. Moore and Mr. Cowell;

these are attached. He explained the unhopeful

financial position of the University and left with

me the attached statements to illustrate the

financial situation. The facts from their point

of view are made plain by these documents, and the

position is not improved by the hitherto profitable,

but in principle undesirable, investment of part

of the University funds in Shanghai mortgages,

which have of course severely suffered in the

current war.

Both Mr. Masson and Mr. Morse paid the

highest tribute to the new Vice-Chancellor,

Mr. Sloss,