CO129-625-6 Hong Kong University- endowment fund 1-5-1951 - 30-9-1951 — Page 56

Hong Kong University. Mr. Sloss said that this problem had always confronted the University and in 1939 he was sent to the U.K. by the Governor to represent that the University was very much more than of only local concern. The prestige and influence of H.M.G. was bound up with the maintenance of a proper influential University. His own Mission in 1939 was interrupted by the war but H..G. had realised that the University was of "Imperial" concern. The Committee in 1946 was asked by the University itself to consider whether it should go on or not and although the Committee was of the opinion that the continuance of the University was essential this could only be done if it received adequate financial backing. Although considerable sums of money had been spent on the University since the war, this had been concentrated on doing better what they had been doing before and did not cover any extension of its activities. In 1946 the Committee had recommended that if the University could not be re-established on a proper financial basis it should not be re-established and technical institutions should be substituted for it. The University serves the interest of the Colony but it was also the instrument of Higher Education for students from other territories in the Far East. 40. of its students came from other territories and with freer communications with China this figure would probably increase to 50%. The opening of the Malaya University would not affect Hong Kong University.

The Secretary of State said that he was very much obliged to Sir A. Morse, Sir M.K. Lo and Mr. Sloss for coming and he was glad to see them. He appreciated the spirit in which the case had been put forward and fully under- stood the points made about prestige and H.M.G's interest. The difficulty we were up against was one of funds as the C.D W. funds were already earmarked. Claims on the fund were increasing all the time as costs were rising everywhere. As a result budgets and plans had to be revised. Other people had also been to see the Secretary of State about such matters. He understood that the present proposal did not refer to capital expenditure or money for any extension of the University's activities, but solely to finding money to cover recurrent expenditure. He had gathered from the correspondence that unless this could be done there was no alternative but to cut down the University's activities. le appreciated very fully that to reduce these facilities would be a serious blow to education and to prestige. He did not doubt that the establishment of an Endowment Fund was the correct thing to do but we had met to decide the ways and means of doing it. The Secretary of State then referred to the reply given by the Foreign Secretary to a P.Q. on Wednesday, the 25th July, and quoted "H..G. will bé empowered to seize Japanese assets in Colonial, Trust and Frotected Territories ... and that these assets .... should be entirely at the disposal of the Secretary of State for the Colonies for the benefit of, and in consultation with the territories with which he is concerned". The Governors had of course been consulted about the disposal of these assets but until it was possible to issue public statements on the matter it must be treated as strictly confidential. The Governor of Hong Kong had been con- sulted about using some of the Japanese assets in Hong Kong to set up the Indowment Fund and the Secretary of State then read out Hong Kong telegram 792 and enquired whether this proposal would meet the case.

Sir A. Morse said that it would and that he thought they should be able to raise a further $4 million to raise the figure to $16 million i.e. £l million.

Mr. Paskin said that the Governors had been informed about the Japanese assets proposals by telegrams and asked to concert action about public statements through Mr. MacDonald. He thought this would take about a fortnight.

The question of an announcement about the Endowment Fund was then considered. The announcement should be so worded as not to hinder the possi- bility of raising further money locally as suggested by Sir A. Morse. As Farliament was due to adjourn next week it would not be possible to arrange a P.M. in time, particularly as it would not be advisable to issue a statement on Hong Kong in advance of one on Malaya and other colonies. It was therefore decided to consider a draft statement at a further meeting (subsequently arranged for 10.30 a.m. on Wednesday, 1st August in Mr. Paskin's room).

Mr. W. Adams mentioned that the fee income of the Hong Kong University was the highest of any and was 40. of income as compared with 203 in the U.K. There was therefore a danger that it would become a rich man's university. The scholar- ship proposal was therefore very important. Mr. Sloss and Sir A. Morse supported this.

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27. 7. 1951.