CO129-610-1 Rehabilitation of Hong Kong University 3-1-1947 - 29-12-1947 — Page 182

Wt. 29446/552 9/46 50m. S. & S. Ltd.

C. O.

Mr.

Mr.

Mr.

Mr.

Permt. U.S. of S.

Parly. U.S. of S.

Secretary of State.

DRAFT.

in the Far East.

FURTHER ACTION.

180

It is not proposed that

there should be a strictly fifty-fifty divi-

sion of both capital and recurrent expenditure

but that the special United Kingdom grant

should cover a larger proportion of the

capital expenditure and a smaller proportion

of the recurrent, adding up to an approximate-

ly equal division of the total Government

expenditure involved over the first ten years.

In the more distant future, of course, the

Colonial contribution would become more and

more predominant.

In more detail, it is proposed that of

the estimated capital expenditure of £716,000,

£500,000 should be provided by a special

grant from United Kingdom funds and that

towards the estimated recurrent working

deficit of £113,500 per annum, H. M. G. should

contribute an annual subvention of £30,000

rising by six annual stages to £45,000.

We know full well how strained United

Kingdom resources are at present, but both

my Secretary of State and Mr. Bevin, who have

discussed it between themselves, are satisfied

of the necessity of re-establishing the

University, and we feel that the good results

which are likely to be achieved in the

improvement