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I have accordingly replied to Gilbert that subject to Foreign Office views, (which I have told him I am seeking) Mr. Creech Jones is prepared to accept the view that the scheme for the extended University involving a grant from United Kingdom "unus must go into abeyance in present
circumstances.
I am, however, seeking Gilbert's agreement
to three propositions
(a) that favourable consideration should be given to the proposals as soon as the financial situption here improve®;
(b) that if we are able to find funds from sources open to ilong Kong Joverament (including Colonial Development and telfare money) towards meeting in the initial stages that part of the cost of the re-eatablishment of the University which was to have beea met rom United Kingdom funds, ang such expenditure will be eligible for repayment from any grant subsequently made from Vaited 7ingdom funds.
(e) that our acceptance of the position in relation to the University vill be without prejudice to the consideration of any other project which we may have to put forward for direct United Kingdom financial assistance to Hong Kong c.g. the airport, or, possibly, a housing or slum clearance scheme, which may be recomended as the result of the forthobaing visit of Sir Patrick Abercrombie to the Colony in October next.
/I
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