30
from myself t
have l which my
be prialized [
the capital and recurrent expenditure involved between, on the one hand, either Hong Kong revenue or C.D. and W. funds and, on the other hand, from a separate Treasury grant.
This memorandum (No.81) has been
prepared and there is above it a tabular statement summarising the proposed division of capital and recurrent expenditure. This has been exhaustively discussed with the Department, Mr. Cox and Mr.Sloss, but we felt that before any definite proposal is made to the Foreign Secretary on the question of the division of the cost, the Governor of Hong Kong should first be consulted. I have therefore passed the draft of a personal telegram/to Sir Mark Young telling him of our estimates of the probable make-up of the students and the proposals which we are going to put to the Secretary of State in the matter of incidence of both capital and recurrent expenditure.
I venture to suggest, however, that both in view of the urgency of this matter and because Mr. Bevin will, I imagine, be leaving at no distant date for the United States, the Secretary of State should now write to him in the terms of the attached draft. This is not absolutely precise on the question of cost but it would, I hope, be definite enough to enable Mr. Bevin to decide whether or not he will support the Secretary of State in a joint approach to the Chancellor with a view to a Treasury subvention for this purpose. It is from that point of view that the matter is urgent. Negotiations with the Treasury ought to be completed by the end of this year so that any agreed financial assistance could be included in the Estimates/very early next
year.
TK. Lord
17.10.46.
1
W. Lloyd.
Thave spoken to teft. He would proper
a stent covering letter to MiBarn with
a menmandenn
setting and ther
care.
Will you please have theirs drafts prepared and for them direct to the private office.
at ind
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