CO129-610-3 Rehabilitation of Hong Kong University 15-2-1949 - 7-2-1950 — Page 11

97510/15/49 (Copy)

The despatch at (2)

(1)sets out the proposed utilisation of H.M.G's

grant of £250,000 and the use that is being made of the Hong Kong Government's contribution of £250,000; and

(II) gives details of the application it is

proposed to make for C.D. & . assistance to the extent or £219,350 for building purposes

(I) 2. H.M.G's grant of £250,000 was made for

"rehabilitation and development". (See 44 on /48 file.) The University's proposal is that the whole amount should be invested in the 32% Hong Kong Government loan; that equal annual drawings of capital and interest should be made over a period of 15 years giving an annual income of £21, 700; and that this sum should be used for additional stuff.

3. Details of the additional staff recommended are given in Enclosure B. of the despatch at (2). The full extra annual cost of such staff is given as £31,800. The difference of £10,000 odd it is proposed to obtain from increased fees.

4. In his minute of 21/3 r. Robison has pointed out the gaps in this proposal

J

a) the doubt as to how the number of students Would be affected by an increase of fees;

b) the question of how that in turn

would affect the University's revenue:

c) the doubt as to whether the increase

in the number of students

would in

fact/