CO129-624-1 Estimates- forecasts for the Treasury 1-10-1951 - 30-11-1951 — Page 8

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Tel. No.: WHItehall 1234.

CHEA

Your Reference ...53652/1/51.

Treasury

(2)

ference..I..F. 42/10/02.

My dear hange.

Danisers,

TREASURY CHAMBERS,

GREAT GEORGE STREET,

LONDON, S.W.1.

27

November, 1951

Thank you for your letter of 12th November, about the provision you are making in the draft 1952/3 C.M.E.S. Estimate for various Hong Kong services.

I agree that token provision only for the airport seems appropriate, in the light of our present information. I have no comment on the £300 for the King Edward VII Scholarships.

We are at present without specific instructions on the policy to be applied in regard to Estimates and you will not, therefore, expect me to do more at this stage than take note of your intention to provide £50,000 in the draft Estimate on account of the University.

Yours sincerely

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(W. RUSSELL EDMUNDS)

PS. Since dictating the fineyoning, the Chanceller has addremed & are Ministers on economies in his cater the 12th November';

our fundary instinchine.

This litter to Ohar

G. Bryant, Esq., C.B.E.,

Colonial Office. Copies

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Mr. Bryant Mr.

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9

Colonial Office,

Sanctuary Buildings,

Great Smith Street,

London, S.W.1.

12th November, 1951.

My dear Russell Edmunds,

We have to consider the provision to be inserted in the draft Estimate for the Vote for Colonial and Middle Eastern Services, 1952-53 for Hong Kong.

(a)

There are three subheads involved:-

The grant in respect of Hong Kong

University

(b) The loan for the construction of an

(0)

airport.

The grant for King Edward VII Scholarships at

Hong Kong University.

As regards the grant to the Hong Kong University the position, as you know, is that His Majesty's Government promised a total sum of £500,000 £250,000 of which was to be found from the Vote for Colonial and Middle Eastern Services and a like sum by means of a scheme under the Colonial Development and Welfare Act.

Detailed estimates have been received from the University indicating probable expenditure to a total of £501,533. Copies of these estimates will be found with C.D.W. Paper (d)2108 which was submitted to you with the Scheme on 8th August, 1951. Treasury reference is 1.F.36/187/025.

As a result of the submission of these estimates schemes under the Colonial Development and Welfare Act to a total of £250,000 have been approved.

In the Colonial and Middle Eastern Services Vote we have so far provided a sum of £200,000 i.e. £150,000 in 1950-51 of which only £50,000 was issued and £150,000 in the current year.

According to our information expenditure against this grant during 1950-51 amounted to £87,926 so that there was a short issue in that year of £37,926. For 1950/51 the estimate expenditure is £147,668 which is within £2,332 of the estimated provision. Quite clearly there is justification in issuing the present year's provision in full and in fact if the figures of estimated expenditure are realised this will leave the University with a deficit of some £35,000 as at 31st March 1952. This sum will have to be issued in 1952-53 together with the anticipated expenditure in that year making a total requirement for the year of £50,000 which represents the balance of the

Xgrant available. We are accordingly inserting this sum in

the draft Colonial and Middle Eastern Services estimate now in course of preparation.

As regards the loan for the construction of an airport the position is that in the current year we made token provision of £10 only on account of the sum of £3,000,000 promised for this purpose.

When the estimate for 1951-52 were prepared we had no clear indication as to when the work on the airport was likely to start or of the amount of expenditure likely to be involved during the course of the year. I am afraid that we are not in a much different position at the present time with regard to this matter. No definite plans to construct the airfield have yet been made. The position is that the Governor

COLONEL W. RUSSELL EDMUNDS

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