CO129-610-2 Rehabilitation of Hong Kong University 9-1-1948 - 18-1-1949 — Page 19

concerned with this part of the financial settlement:

Kraemer

4/5-

19

Mr. Sidebotham

Mr. Serpell

see

In the course of discussion, Mr. Serpell did say that the Chancellor of the Exchequer had in mind development, but I pointed out to Mr. Serpell that it would look a little odd if H.M.G. decided to give the University £1 million towards development so soon after we had announced that the recommendations of the Committee for the Development of the University, which involved

substantial financial assistance from United Kingdom funds, had to be deferred owing to the present conditions in the United Kingdom P.. reply on 54147/P.0.2/48. appreciated the point and it was agreed to defer for further consideration the precise use to which H.M.G.'s grant should be applied. You will see that the statement says that "the precise use to which that sum (that is the £ million) is to be applied would be the subject of further discussion between the two Governments. I should perhaps also explain that when I included in the proposals for the financial settlement à free grant of £4 million for the Hong Kong University, certainly had in mind the money that was required to rehabilitate the University which it was then proposed should be met from Hong Kong funds I imagine that you will now be taking up with Hong Kong the question of the use to which this Malilintigrant is to be put, and, if I may offer a

Xat the

expense of

1?

I

suggestion, it is that we should be well advised to press for rehabilitation and not development. If the money is devoted to development, we might prejudice whatever chances there are of getting a larger grant from U.K. in the future for carrying out the scheme recommended by the Advisory Committee, for which we hope to get from U.K. funds

a capital