CO129-610-1 Rehabilitation of Hong Kong University 3-1-1947 - 29-12-1947 — Page 218

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Mr. Bevin and Mr. Creech Jones, had their full support and

a letter was sent to the Treasury by Sir Thomas Lloyd enclosing

a copy of the Committee's Report, endorsing their recommendations,

and proposing that, very broadly, there should be a fifty-fifty

division as between the Colonial contribution (including Colonial

Development and Welfare) and a special United Kingdom contribution.

On this basis the Treasury were asked to agree to a capital grant

from United Kingdom funds of £500,000 and an annual subvention of

£30,000 rising to £45,000. The Foreign Office also sent a

supporting letter.

After some delay the Treasury replied on the 11th August,

to the effect that although on the whole, with some reservations,

they felt sympathetic towards our proposals, this was the sought

of scheme which would have to go into abeyance during the present

economic crisis.

It was felt however, that there was need for a more definite

assurance than this, since considerable public interest had been

shown over the proposal to re-establish the University on an

extended basis, and a complete abandcament of the scheme would

lead to severe criticism as soon as the present difficulties were

a little less in the minds of people. We therefore asked the Treasury for an assurance (a) that favourable consideration would

be given to the proposals as soon as the financial situation improves,

and (b) that if we were able to find funds from sources open to

the Hong Kong Government towards meeting part of the cost of the

re-establishment of the University, which was to have been made

from United Kingdom funds, any such expenditure would be repaid

from United Kingdom funds at a later date. But in the Treary

reply it was stated that they would not feel justified in accepting

this deferred commitment (see No. 44 on the file).

In a recent discussion we told Dr. Sloss (who is in this

country until October 20th), that the latest letter from the

Treasury seemed to us to dispose of any question of our being able

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