CO129-593-3 Rehabilitation of Hong Kong University. For extracted photographs see CN 3-45 12-1-1946 - 27-10-1946 — Page 72

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Presumably in this case the University's endowments would

not become available to Government but would revert to

the source from which they came (the Rockefeller Foundation,

etc.) These endowments provide an annual income of

£15,000 and it must be supposed that if the Hong Kong

Government took over the services hitherto provided by

the University the annual cost would be not less than

£45,000. (That is the Government grant of £30,000 plus

the endowment income of £15,000.) The probability is

that it would be considerably more. If a grant of

83 500 £60,000 from the Hong Kong Government can be assumed

the balance required to make up the estimated figure

of £90,000 for recurrent expenditure is £30,000. It is

suggested that this sum should be sponsored by the

Foreign Office. If and when any chairs are endowed the

recurrent expenditure will be proportionately reduced.

Capital Expenditure

*

7. If the cost of endowing Chairs is ignored, the

capital expenditure estimated as necessary in the

Committee's Report, amounts to £716,000. (See paragraph 1

above.) of this £116,000 is put down as required for

the repair of buildings and the replacement of equipment

damaged during the war. It seems reasonable that th is

expenditure should be met by the Hong Kong Government

from the loan which it is proposed to raise for general

rehabilitation purposes - unless and until any money is

available by way of reparations. Part of this sum of

£116,000 is in fact already being met by the Hong Kong

Government since the Government grant of £30,000 for this

year is being used for building repairs. The interest

free loan of £30,000 from Hong Kong Government funds

authorized by the Treasury in February 1946 is also

being used for the replacement of equipment and it is

/possible