CO129-610-1 Rehabilitation of Hong Kong University 3-1-1947 - 29-12-1947 — Page 62

to face consequent repercussions, if any, on Hong

Kong's general financial situation vis-a-vis H.M.G.

61

This gives general cover for the proposal an paragraph 3

of your telegram to go to the Legislative Council for

recurrent expenditure and would - if you agreed and could find

give similar cover for cppital expenditure to be

the money

charge against Hong Kong Estimates.

4.

The

Treasury has unofficially made/following suggestions

as to other possible ways of finding funds-

(a) Hong Kong War Memorial Fund, if there is likely

to be a balance available after expenditure against the First and Second Schedules under the Ordinance has been met.

There may be

(b) Treasury te about to suggest that certain items

at present proposed to be met from proceeds of loan/ght be included for e; 3rd Ý. assistance, since they are development rather than rehabilitation

thus releaciis corresponding amount towards) re-establishment of University.

I do not yet know how pertrops bi mal- mueh would be involved.--

(0)

*.H

which

met-

Funds, than

releasing

hot

good.

Possible limited assistance from British Council fros

its foreign expenditure in view of value of University in Sino-British cultural relations. This is being investigated, but hoornents

(a) Local subscriptions.

་

5. In connection with sub-paragraph (d) above, we have noted

paragraph 1 of your telegram; if prospects are poor, possibly

up to an agreed limit Gove ment dollar for dollar contribution/might help.

G. Subject to suggestion in paragrahs 4 and 5 above jonë

álno-te-possibility of any part of capital expenditure which

Tegarded as development being inoluded in application for

Trant from central C.D. & W. allocation, there seems to be no

elternative to meeting capital grant of $4,000,000 as well as

recurrent deficit from Hong Kong funds.

7. I am afraid that the foregoing is very disappointing.

May we assume that you will now discuss the matter further with

Iniversity Authorities, and put up proposals for Government

assistance