CO129-610-3 Rehabilitation of Hong Kong University 15-2-1949 - 7-2-1950 — Page 101

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£220,000 asked for from the C.D. and . Higher Education allocation being inter-

ded to meet capital costs.

6. The ormer proposal might be permissible, although there are technical

objections and some doubts as to its firencial soundness since the income from

the Hong Kong Government loan would osase after the end of the 15 years; but

the Inter-University Council and the Colonial University Grants Advisory

Committee, who advise the Secretary of State on C.D. and 7. grants to universities,

have shown themselves disinclined to rocommend the grants desired, partly because

they think, on their present information, that the proposals tend to go beyond the

needs of the Colony as such and C.D. and W. funds cannot, of course, be used

for training foreign students. A delegation from the 1.0.0. vill, however, bo

visiting long Rong at or soon after Christmas, 1949, an it has been decided to

defer a decision until they have done so.

7. A semi-official letter has been sent to the Governor warning him that

the prospects for a C.D. and W. grant are not rosy, unless the delegation return

home with different views, and that we suggest he should, in the meantime, be

preparing alternative plans (to be ready in case the I.U.C. is not converted)

on a more modest scale commensurate with the resources which can be found

within the Colony (including H.M.G.'s grant).

}