CO129-610-3 Rehabilitation of Hong Kong University 15-2-1949 - 7-2-1950 — Page 97

which we had earlier suggested to Hong Kong

they should bear, without prejudice to ultimate

arrangements for financing the cost of the

airfield) is the best advice available to

us and we think it should be accepted.

5. The sum is admittedly comparatively

small, but it would be very difficult for

Hong Kong to find the money. Were they forced

to find it by a refusal on H. M. G. '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.M.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,

On these grounds

it would seem to H. M. G. 's advantage to provide

£25,000 on the 1950/51 Estimates and we propose this.

(b) University.

6. For the current year (1949/50) provision

has been made for £150,000 out of H. M. G. '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

(2)

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