54147/47
23 August, 1947.
102
39
Ansid. (43)
Re-establishment of Hong Kong
University
I believe you had a copy of my last letter to Crombie of the Treasury, dated the 27th of June, on this subject.
I have now heard from Gilbert, who says that, on the whole, and with some reservations, they felt
unl sympathetic towards the proposal for the rant of assistance from United Kingdom funds. Gilbert however goes on to Buy that as he sees it, the financial position has been changed by developments over the last few months, culainating in the situation discussed in the House of Commons recently, and that it seems clear that this is the sort of scheme which must go into abeyance in the present etreunatances. Gilbert adds that he has not consulted the Chancellor as he imagines that Mr. Creech Jones will readily accept the above view, but he said that if it is not the case, he would of course be quite ready to put the matter to the Chancellor and seek his decision.
I managed to put this before Mr. Creech Jones prior to his departure for the West Indies, and he decided, subject to Foreign Office views, that we must accept the Treasury view in present circumstances. He, feels, however that the abandonment of the scheme for an extended "niversity will lead to severe criticism once the present crisis is over, and that, in the meantime, overything should be done to ensure that it will be possible to put the plans for the extended University into operation as soon as the situation permits.
/I
SIR SHE SAROENT, K.C.B., 7.C.
7.C.M.G.
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