.321/51
SAVINGRAM
ろ
To the Secretary of State for the Colonies.
109
From the Governor, Hong Kong.
Date - July, 1951.
No. 75% CONFIDENTIAL.
1951.
Your Confidential Savin-ram No.473 of the 21st May,
University Endowment Fund.
The establishment of the above is becoming a matter of some urgency in view of the financial position of the University.
2.
The budget for the financial year ending on the 30th June, 1952, shows a deficit of over a million dollars, and there is every expectation that for 1952/53 the figure will he in the neighbourhood of $1 millions.
3.
I have given consideration to an increase in the recurrent grant, hut I have reason to believe that such a Course would only be agreed to by the Unofficial Me bers with great reluctance, and nossibly with the condition that Government control should he imposed on the University's spending, which would he undesirable. In any event it seems most unsatisfactory to continue meeting annual deficits in this manner. I have therefore been exploring ways and means of raising money for the Endowment Fund.
4.
My advisers and I are unanimous that in view of the business recession an anneal to the public of Hong Kong would be useless. I have therefore heen endeavouring Informally to obtain the support of the Hong Kong Jockey Club. whose charitable donations have been, and are, on a most generous scale, for a proposal that they should contribute the sum of $2 millions to the Endowment Fund, to be matched by an equal sum from this Government, and that His Majesty's Government should be asked to contribute an amount equal to that raised in the Colony, 1. e. $4 millions.
i.e.
It is unfortunate
that a certain amount of opposition to this proposal has been manifested by the Jockey Club, on grounds into which I need not go in detail, and I have thought it wise to let the matter rest until the return of Sir Arthur Morse, Chairman of the Jockey Club.
5.
If the Jockey Club should ultimately agree to support this scheme, I trust that His Majesty's Government will find it possible to contribute the equivalent sum of £250,000.
6.
It is now apparent that even this total of $8 millions or €50,000 is not going to be anything like adequate to meet deficits of the magnitude which are to be expected. With an average return of 12 per cent, the fund will produce only a million dollars or approximately two thirds the amount required for 1952/53. None the less, the scheme at least zoes some way towards solving a problem which is rapidly becoming more difficult, and I trust that His Majesty's Government will find it possible to agree.
7.
I shall advise you as soon as I have anything definite to report. If the Jockey Club should decline to assist, and if His Majesty's Government still finds itself unable to contribute, there seems to be no alternative to informing the
RESEAR'S OFFICE 10 JUL 1951
COLLAL OFFICE
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