CO129-606-4 Hong Kong Loan- government grant 1-4-1947 - 2-3-1948 — Page 27

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under the impression that there was some sympathy in the Treasury with our appeal, although it was not possible for various reasons to entertain it, and it might be possible to reconsider it as part of the general financial settlement. It is, of course, a point which we should have to put to the Governor before any final decision, were, taken, but I think that we may assume that he would heartily approve of a grant to the University being included in the general financial settlement. I ought, however, to say that the Governor has put up proposals for financing the re- establishment of the University, which we shall be referring to you in due course, and that these include finding the whole of the estimated cost or rehabilita- ting the buildings, namely $4,000,000, from Hong Kong funds at the expense of other important rehabilitation projects.

9. The proposal in the last sub-paragraph of paragraph 5 is one that has been put forward by the Governor as part of his suggestions for finding the money which will be required if it is decided to con- struct a new airport at Deep day. There is a defence as well as a financial aspect to be cleared, and it has not yet been agreed by all concerned that the new airport should be constructed. Te have, therefore, make this proposal subject to a decision to construct a new airport. we feel that it is reasonable and proper to bring it in aa part of the general financial settlement.

10. To summarise then, our proposals are that, on the assumptions set out in paragraph 3, Hong Kong should

receive