CO129-625-5 Hong Kong University- establishment fund 1-3-1950 - 31-1-1951 — Page 17

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would produce a yield of £8,750 per annum leaving about £36,000

per annum to be raised otherwise.

If you agree with this

suggestion I would have no objection to the rest of the fund being

invested in the local utilities.

Assuming a yield of 12,3 from the

local utility companies a further £300,000 would then be needed

in the fund to produce the further £36,000 needed. You are yourself

contemplating possibility of Hong Kong Government contributing、

£250,000 to endowment fund. If in the event this proves possible and

you agree that £250,000 should be invested outside Hong Kong I will at

once propose that H..G. should contribute £250,000 to the fund to be

invested in gilt-edged securities. If H.".G. agree to make this

contribution only a further 350,000 will remain to be raised to

provide an endowment fund adequate to meet the needs of the

University and.I feel sure that it will prove possible for at least

this amount to be raised by subscriptions from members of the

public in Hong Kong.

3. I should be grateful for your comments on the

suggestion that £250,000 of the endowment should be invested in

gilt-edged securities and only the remainder in local stocks. I

should also be glad to learn definitely as soon as possible

whether you will this year be able to make a contribution of

£250,000 towards the fund.

SECER