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progress towards the larger University might be begun by means of an advance from C.D. and W. Funds (repayable later out of any grant made by H. M. G.) is definitely ruled out. Nor can we give any kind of assurance of subsequent reimbursement from H.M.G. Funds to any other source we might try to tap.
Mr. Galsworthy's minute of 12th September and his drafts to Sir Bernard Gilbert and the Governor referred to therein are rendered out of date by Sir Bernard Gilbert's letter.
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The University Advisory Committee recommended that if their proposals for a larger University could not be adopted, the University should be wound up altogether. These proposals must go into abeyance, but are not dead. There can therefore be no question of winding up the University now if this could be contemplated politically (there is an expression of Sir Mark Young's view on this point at 23) and Dr. Sloss told us yesterday that this view was shared by Sir Alexander Grantham. We should therefore suggest to the Governor that the next step is for the University Authorities to prepare plans for the University to provide the best facilities possible within the resources likely to be available.
I place opposite a draft to Sir Bernard Gilbert for Sir Thomas Lloyd's signature, accepting the situation. In it I have made reference to the recent information from the Governor about possible Chinese subscriptions if H.M.G. were to back the scheme. This is a new point of which the Treasury will have to be informed when the project is reviewed, and I think it would be well to make the first reference now. I also place a draft from Sir Thomas Lloyd to Sir Orme Sargent. There is no reason to suppose that the Foreign Office view will differ from ours (see 43). There is also a draft telegram to the Governor.
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