COPY
54147/3/45
852892/01/01
Treasury Chambers,
Great George Street, London, S.W.1.
6th February, 1946.
75
Dear Miss Ruston,
I refer to your letter of 12th Jamary on the subject of a Government grant for the University of Hong Kong.
It is clear that the immediate problem is money for the accrued salaries of the staff. The estimated cost of this is £117,000 less £9,500 recoverable in respect of advances made during the war. To meet the balance of M107,500 the University has a bank balance of £37,000, leaving approximately £70,000 to be found. The Colonial Office propose that Government grant should be paid for the period of the occupation at the normal pre-war rate which would yield about £100,000 leaving a surplus of £30,000 for apparatus and equipment needed before the University can be opened even on an austerity basis.
We are willing to agree to a grant of £70,000 to meet the immediate liability and a loan of such further amount, not exceeding £30,000, as the University can show to be required for immediate reconstruction needs. This loan can be interest free for the time being and the terms and conditions of repayment can be left over for consideration when the University's financial position can be more accurately judged. Any further payment would have to await the report of the proposed Committee and we feel that the Government should reserve the right to require the University to apply at least some part of its capital funds towards the cost of reconstruction.
There remain two minor points. The University estimates refer to payments due to Chinese members of the staff.
As you
Miss Ruston,
Colonial Office.
/ know
No comments yet.
Private notes are available after approval.