CO129-610-2 Rehabilitation of Hong Kong University 9-1-1948 - 18-1-1949 — Page 225

Colonial Office No. 54147/47 Secretariat File No. 2220/45

PRIORITY

To

SAVINGRAM

Secretary of State for the Colonies.

From the Governor, Hong Kong.

Date

12th January, 1948.

No. 28

Я

21

RECEIVED

20 JAN 143

C. O, REGY

$2)

Personal for MAYLE. Your savingram No. 852 of 20th November, 1947. Hong Kong University.

1.

I note with regret that your approach to the Treasury for assistance has been unsuccessful.

2.

Since neither I nor my advisers are prepared to accept the recommendation of the Hong Kong University Advisory Committee, 1946, that if the University cannot be developed on the lines recommended by the Committee, it should be abolished and replaced by technical institutions of lower status, I have further examined the means whereby the University might be restored to its 1941 status.

: 3.

I am advised that the War Memorial Fund will not have any considerable sum available after expenditure under the First and Second Schedules of the Ordinance has been met. It also seems unlikely that any substantial sums can be expected from either the Coloni al Development and Welfare Fund or the British Council, nor is the prospect of any considerable sum being raised by public subscription at the present time other than remote. A public appeal might be made with some pros- pect of success at a later date in connection with extensions which might then be under consideration.

4.

My attention fell first upon the capital cost of rehabili- tation. After investigation I have found it unnecessary to ask the Finance Committee of Legislative Council for special provision for the $4,000,000 required to complete the reconstruction of the University buildings and for the purpose of constructing buildings, completing equipment and workshops and augmenting the Library in accordance with plans which had been approved in 1941 but which were frustrated by the outbreak of war. For the se purposes I propose (with the Finance Committee's agreement) the expedient of allotting $4,000,000 of the Public Works allocation from the Rehabilitation Loan. It is true that other important projects which had been included for rehabilitatim in the Public Works allocation will suffer as a result of this reallocation of funds, but I am satisfied that the strong local desire to see the University in operation again will fully justify this course of action.

5.

It was necessary next to review the recurrent costs of the University. Even before the War the income of the University was inadequate to meet its regular running costs. The decrease in the value of money which has been one of the consequences of the war has caused a further deterioration in the position. On the one hand no increase of income from investments can be hoped for; on the other, any material increase in fees, with the exception of boarding charges, is considered to be out of the question in view of the extent to which normal professional and public service salaries have been out stripped by the increase in the cost of living. The only reliable source of increased income appears to be an augmented grant from Hong Kong Government Funds, and I have therefore approached Finance Committee with the proposal that the annual grant to the University which at present stands at $455,000 should be increased to the sum of Ál1⁄2 millions. The Finance £93 Committee has approved this increase in the Annual Grant for the year 1948-49, and I accordingly recommend that the recurrent expenditure be financed in this manner, and the capital expenditure as set out in paragraph 4 above.