CO129-610-2 Rehabilitation of Hong Kong University 9-1-1948 - 18-1-1949 — Page 22

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her as soon as possible.

208-

almer

13.5.1948.

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1.

Reference Mr. Sidebotham's minute

of 13/5. I had a discussion with

Mr. Serpell on the 21st as to what should be said to Hong Kong regarding the

precise use to which H. M. G. 's free grant of £250,000 is to be applied (vide para.3(d) of 36).

2. He informed me that the Chancellor's intention was that the free grant of £250,000 sho ld be used for developing the University so as to further British prestige in the Far East. Mr. Serpell considered that there could be no question of this guant being used for rehabilitation of the University up to the pre-war standard, thereby releasing for the purposes for which it was originally

intended the £250,000 which the Hong Kong

Government had recently undertaken to make available for rehabilitation of the University (vide para. 4 of 2). In Mr. Serpell's view it should be said

clearly to the Governor that the intention is that H. M. G.'s grant should be used to supplement the funds made available by the Hong Kong Government for the rehabilitation of the University.

Having

made this clear, we should then invite the Governor's proposals as to how (more exactly) it should be used, saying that H.M.G. would not wish to limit the field of expenditure (otherwise than as already made clear), but expressing the hope that

the