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54147/50
PRIORITY
SAVING
From the Secretary of State for the Colonies.
To the Officer Administering the Government of HONG KONG
No. 708
54141/50
Date 15th July, 1950.
CONFIDENTIAL
My despatch No. 146 of 7th June.
Hong Kong University.
I have agreed to set aside £250,000 from the C.D. & W. Higher Education Allocation as recommended by the Inter-University Council Visitors for capital work in connection with the development of the University. The following paragraphs deal with the arrangements to be made for the submission of detailed C.D. & W. schemes up to this limit.
2. I consider that it would be convenient and also more in keeping with the University's independent status if the University rather than the Government of Hong Kong were the administering authority for C.D. &.W. schemes. In order for the University to qualify as an administering authority it will be necessary for certain conditions which are set out in my predecessor's circular despatch of the 29th September, 1949 to be complied with; I enclose for your information and for the information of the University authorities two copies each of this despatch and of a subsequent circular despatch of 9th January, 1950.
3. With regard to the item mentioned at A(i) on page 9 of the Report of the Visitors, this grant as you know formed part of a general financial settlement between His Majesty's Government and the Government of Hong Kong. Accordingly the provision in Colonial Office Votes must take the form of a grant in aid to the Government of Hong Kong and the terms of the Vote as approved by Parliament requires that the issue should be supported by audited accounts and with any report thereon by the Director General of Colonial Audit. It is recognised that some inconvenience might result if payment of this grant and payments in respect of C.D. & W. schemes were dealt with by different authorities particularly as money from both sources will be used on related capital works. While it is not possible in view of the terms prescribed by Parliament, to vary the condition that in the former case payment would have to be through the Government of Hong Kong there would be no objection in principle to the University administering the expenditure from
met. this grant provided the audit condition can be fully this connexion regard must be had to paragraph 2 (c) of the enclosed memorandum of July, 1948. It would seem that the best course for the University to pursue in order to avoid the necessity of having to distinguish between expenditure from the C.D.& W. grant and from the grant promised in the 1948 Financial Settlement would be to arrange for its
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