CO129-625-6 Hong Kong University- endowment fund 1-5-1951 - 30-9-1951 — Page 18

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that for 1952/53 w expected to be in the neighbourhood of $1 million. In the circumstances if the income from $12 million does come to $1 million as suggested in (17) there should be sufficient money to cover estimated expenditure up to 1952/53. We could therefore insist that only $12 million should be found from the Japanese assets and efforts should be made to raise further money from local contributions.

My own opinion is, however, that an Endowment Fund of $12 million, and particularly if the scholarship proposals are included, is working on rather a small margin. It may well be possible to raise a further $4 million locally but I do not think we can bank on this. However much we may argue that the $12 million should be regarded as a contribution by H.M.G., local opinion will be that this is money which if not given to the University would have been used for some other local purpose. Again a fund of $16 million should make the University's financial position secure for some time to come whereas if we say that $4 million is to be raised locally, and it is not forthcoming, it will then be too late to obtain more money from Japanese assets and the University will suffer. I consider, therefore, that the Governor's advice that the whole of the $16 million should be found from the Japanese assets, should be accepted, particularly as when first suggesting this course see paragraph 3 of (10) we contemplated that one solution would be to hypothecate all of the Japanese assets for this purpose.

I consider, however, that it is desirable that the door should be left open for further local contributions and I suggest that a sentence is added at X after ".... boys and girls" on the lines "The Secretary of State trusts, however, that this contribution will not be regarded as the final answer to the University's needs and that its resources will be increased still further by local subscription."

I understand the date for the release of the "Japanese assets announcements" has not yet been decided as Malaya's announcement is not yet ready. There may be time to consult Sir A. Morse and Sir M. K. Lo if necessary but I do not think it is essential to do so.

Justhall

13. 8. 51.

of the theofficials prefer to later

The work around.

needed and of the Japanel.

*£250,000

Mr. Pask

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one

I doubt whetting the treating of state into reasonal object, if though I think it worth the parchment hands the $16 million could han ken

could.hom (put up by private subsorpten but I

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A again for silinething tithi S.5. on his retum abatth asthin this mouth

$4 million on durted

There should still be some

to this purposes.

fir a tuner is still at the

Ritz MTI

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