CO129-610-1 Rehabilitation of Hong Kong University 3-1-1947 - 29-12-1947 — Page 26

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Secretary of State.

Sir Bernard Gilbert's letter (No.37) is definitely a disappointing outcome of our long correspondence with the Foreign Office and Treasury about the possible provision of substantial financial

assistance for Hong Kong University, but in the present financial situation I doubt whether we can challenge the official

Treasury view by asking that the correspondence should be put before Mr.Dalton as Sir B.Gilbert has offered.

If, as I think we must, we accept the Treasury view, the question then arises whether any financial assistance for Hong Kong University could be found from other sources-e.g. from the Colonial Development and Welfare moneys ear-marked for higher education. As these sums fall far short of the expected demands for this purpose from other parts of the world, it does not seem possible to help Hong Kong from that source. They must first see whether they can provide from local funds a reasonably good University with far more limited services than those contemplated by the Committee which investigated this problem. In communicating with the Governor we should not say anything which entirely rules out the prospect of assistance from Colonial Development and Welfare. On the other hand, I would say nothing to encourage that hope.

I suggest therefore that we should proceed as suggested by Mr.Mayle overleaf. I am passing this through Sir S.Caine in view of his general interest in the matter.

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14.8.47.

I agree that this is disappointing, but impossible to fight at the moment. I do suggest, however, that we make it absolutely clear to the Governor, and indeed the public in Hong Kong, that H.M.G's present unwillingness to help financially is due purely to temporary inability, and that it would be possible to reconsider the matter at some time in the future.

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