CO129-618-3 University of Hong Kong- grants and financial assistance 6-5-1948 - 10-6-1948 — Page 56

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54147/48)

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Mr. Wallace.

I have discussed with Mr. Paskin. Our action should now be to draft a telegram to Hong Kong (it must be agreed with the Treasury) with reference to para. 3(d) of the telegram at No. 36 with a view to elucidating exactly what the Hong Kong Government's proposals are, e. g. (a) are they going to contribute £250,000 in addition to the £250,000 H. M. G. are prepared to put up, and (b) in the light of whatever is their intention on that point, how is it proposed that the money should be spent? The Treasury will, I think, probably press for something to be put into the telegram to the effect that the Treasury consider that H. M. G.'s grant should be used for development. On the other hand, until we know what the Governor's ideas on the matter are, I should be very disinclined to commit the Colonial Office to any acceptance of that view. The draft should be seen by Mr. Palmer, and it should link up with the question of an application to the University Grants Committee, on which I have suggested that a separate telegram should be drafted on the file already with you.

Please, therefore, concert a draft telegram with Mr. Palmer and the Treasury for conson by higher authority here as soon as possible.

(Intld.) J. B. S.

13.5.48.