CO129-610-3 Rehabilitation of Hong Kong University 15-2-1949 - 7-2-1950 — Page 94

5. The sum is admittedly comparatively small, but it would be very difficult for Hong Kong to find

the money.

Here they forced to find it by a refusal on H.2.0.'s part to make this small first advance from the promised loan, their desire for a loan on the London market, already voiced, would be stimulated and their reluctance to contribute towards the cost of the reinforcement of the Colony would be

strengthened; whereas, on the other hand, we may hope that a readiness on H..G.'s part to make this advance on the promised loan may have a good psychological effect on Hong Kong's consideration of the cost of the reinforcement contribution. Un these grounds it would seem to H.M.G.'s advantage to provide £25,000 on the 1950/51 stimates and we propose this.

6.

(b)

University. For the current year (1949/50) provision has been made for £150,000 out of H.M.Q.'s promised grant of £250,000 (vide the letter from Bryant to Russell-Edmunds of the 18th January referred to above).

7. In despatch No. 30 of the 15th February, 1949, the Governor of Hong Kong set out proposals for the rehabilitation and development of the University involving the use of H.M.G.'s grant and also C.D.S W assistance from the Higher education allocation. These proposals included the immediate investment of H...G.'s grant as a lump sum, and, if approved, would therefore have required the paying over of the whole 2250,www in one sum. The proposals were considered here informally by the Inter-University Council for Higher Aducation in the Colonies, who however intimated that they would prefer not to comment

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