Governor, whether funds could be made available from any other sources open to the Hong Kong Government, including Colonial Development and Welfare, towards meeting, in the iaitial stages, that part of the cost of the ro-establish- ment of the University which was to have been met from United Kingdom fundo, on the understanding that any su or sums so made available will be eligible for repayu from any grant subsequently made from United Kingdom funds. This is I suggest eminently reasonable as the money in question would reprosent the cost of providing facilities for foreign students, which is not Hong Kong's concern. I should be glad to know whether you would agree to this understanding.
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There is one further point which I should like to make at this stage • I hope you will agree thɛt our acceptance of the "roposition that the University scheme must be deferred on account of the crisis will not necessarily commit us to the costponement of other projects which wo inay find it necessary to put forward for United Kingdon financial assistance to Hong Kong e.g. the airport, or possibly a housing or slum clearance schone, which might be recommended as the result of 3ir Patrick Abercrombie's visit to the Colony next October
I should be very grateful for your views on the points raised in the three preceding paragraphs. I suggest that when they are satisfactorily settled, the matter might then be pursued by the Departments concerned. I would propose to ask the Far Eastern Department to prepare a telegram to the Governor and send it to the Treasury for concurrence.
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