CO129-610-2 Rehabilitation of Hong Kong University 9-1-1948 - 18-1-1949 — Page 23

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the Governor's proposals would be such as would assist in the development of the University and increase British prestige in the Far East.

3. I said that for several reasons I thought the approach should be different, that we should inform the Governor that the Treasury (or the Chancellor) had suggested that the money should be used as above, but that the Secretary of State would be glad of the Governor's views.

4. The reasons I adduced for prefering this approach were threefold:-

(a)

(b)

Our telegram announcing the free grant

(para.3(d) of 36) said that the precise use to be made of the money would have to be further discussed between the two Governors, but it did not suggest any definite important limitation on the use of the money such as is now being proposed. It is true that such a limitation was mentioned during discussion of the general financial settlement, but Mr. Mayle resisted it at the time and it was apparently not pressed (see Mr. Mayle's minute of 5/5).

The Governor had made it quite clear that the making of £250,000 available by the Hong Kong Government for rehabilitation of the University would mean that other important projects would suffer (para.4 of 2). It might well be that with H. M. G. 's free grant of £250,000 in hand and the possibility of further assistance from the Central .D. & W. allocation for higher education (see paragraph 5 below) the. Governor might decide to concentrate on the University and let the "other important

projects"