(c) that such a course would have a profound effect
on British prestige generally in view of Hong Kong's position as an outpost and shop window of British democratic institutions.
9
I am sveiòƒ satisfied that it would be right for the Secretary of State to see and hear what the Unofficials say. The party would include Sir A. Morse, Sir M.K. Lo and Dr. Sloss, the late Vice Chancellor of the University representing Colonel Ride who will have left to return to Hong Kong by then.
I think the proposal which Mr. Palmer and Mr. Hall have suggested i.e. to use some of the Japanese assets in Hong Kong is, in many ways, an attractive one and I agree that it would be well to get the Governor's preliminary views on it right away. We shall want time to consider them here before the meeting takes place and to advise the Secretary of State there- on, and I should get the telegram off with the least possible delay.
it
I have not delayed this to pass through the Finance Branch since the proposal is one which has already been dis- cussed with Mr. Palmer.
The telegram should, however, clearly be confidential at this stage; it can, if eary, issue separately, and the papers go on quickly to the Private Secretary who has already been warned of a possible discussion for next week between the
Secretary of State and the Unofficials, miharzews to arranging
a dalê towards thesed of next week.
In Brudillon shouls 225 thith bare
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If weeting hous how a reply, withi The S. tel.
Tel No 866 to Hong Kong.
JBS
18. 7. 1951.
18.7.51
I have passed (and detached) the draft telegram to Hong Kong asking the Governor whether it may not be possible to find a solution to this problem by allocating to the University the whole (or part) of the Japanese assets, now in the hands of the Hong Kong Custodian. (We hope that a decision will be taken by Ministers on Monday that Far Eastern Colonies, which were occupied by the Japanese, will be allowed to keep, and apply to the benefit of those territories, the Japanese assets now in their hands).
As to the representations made at the meeting of which an account is given at No. 9, I was not able myself to be present at that meeting, but later in the day I met Sir A. Morse and Sir M.K. Lo and they both expressed them- selves in very strong terms about the little hope that was held out for assistance to the University being forthcoming from H.M.G. Indeed they went so far as to say that they felt that Hong Kong had been "led up the garden path' by the decision (in spite of the recommendation in the Report of the Cox Committee) that the University should be reopened on its pre-war basis without any real assurance of adequate financial provision being made for it. I was not myself concerned with the affairs of Hong Kong at the time of that decision,but I told them that I felt that there was no basis for such a feeling, and I find that my recollection is borne out by the terms of the correspondence at Nos. 45 & 46 on 54147/47. While, at that time, there was still a hope that the financial circumstances of this country might recover to the point where the bigger scheme, advocated in the Cox Report, could be put into effect, it is quite clear
/ that
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