CO129-610-1 Rehabilitation of Hong Kong University 3-1-1947 - 29-12-1947 — Page 32

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Sir Thomas Lloyd

The following is a note for your interview with Dr. Sloss to-morrow, following the talk which Mr. Wallace and I have had with him to-day.

Salaries Commission

I attach a spare copy of the report and appendices, merely so that you may have some idea of what they are like. You should also see the Governor's tribute to Dr. Sloss in paragraph 25 of his covering despatch, of which a duplicate is enclosed with the cover of the report. I received an advance copy of the report last Friday. The spare copies came in yesterday afternoon.

In view of the desirability of dealing as quickly as possible with the recommendations in the report, involving increased emoluments (costing in the neighbourhood of an additional £900,000 per annum) we are distributing copies of the report and appendices and Governor's covering despatch to Treasury, Finance Department and C.S.D., and inviting them to a discussion with Dr. Sloss on the 7th October (which is the earliest convenient date, as he plans to be out of town between the 1st and the 6th October), at which, I hope, we may settle any points arising on these recommendations. facilitate consideration and discussion, we are drawing up, in conjunction with Dr. Sloss, a memorandum, summarising the main recommendations and points. Copies of this will be circulated before the meeting.

To

Dr. Sloss is agreeable to the procedure outlined above and thought it would meet the case. we cannot, of course, be sure that the Treasury will be prepared to agree to this plan. They don't usually like to come into this sort of discussion themselves. I have warned Dr. Sloss about this.

Hong Kong University

We told Dr. Sloss, that the latest letter from the Treasury seemed to us to dispose of any question of our being able to reckon on any grant from U.K. funds in the future. All that the Treasury will agree to at present is to review the position at some later date. Dr. Sloss said this was a great pity, because he thought that if they were able to say in Hong Kong that H.M.G. were behind the University, even if only to the extent of a token contribution, they would probably be able to raise £100,000 to £290,000 by voluntary subscription among the Chinese. These voluntary subscriptions would not be forthcoming otherwise, because the people felt doubts about the future of Hong Kong and also the currency of the Colony. As to the former, I suggested that it could be said with confidence that whatever the future of the Colony, the University was likely to remain British. Dr. Sloss said that this line had been tried but it had not succeeded. On the currency point, he said that there was a belief that Hong Kong might leave the sterling area, and that the request for her to do so might come from here, since at present she represents a drain on our dollar resources.

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