It follows a visit by Professor Li, Secretary for Education and Manpower, to HKUST last week.

He told senior management that the government had enough money to support only two world-class comprehensive research universities, and that funding for higher education would have to be cut severely because of the huge budget deficit.

Professor Li promised to provide additional resources for the merger to create a world-class institution, while respecting the unique cultures of both universities, according to an e-mail distributed by HKUST president Paul Chu Ching-wu, and council chairman John Chan Cho-chak, to staff, students and alumni on Friday.

Francis Lui Ting-ming, a spokesman for HKUST's Committee of Concerned Faculty, which strongly opposes a merger, said: 'The message from Professor Li seems to be that we will be subject to the same drastic cut in funding like other universities are likely to experience if we do not merge.'

He also questioned the impartiality of Professor Li, saying he might have a conflict of interest given his previous role as vice-chancellor of Chinese University and the fact that he is currently on leave from the university's medical faculty.

'He should not be directly involved in university affairs but rather leave it to the universities to discuss the issue among themselves,' said Professor Lui, who is a director of the university's Centre for Economic Development.

'Why should the merger be between Chinese University and HKUST? Why not between the University of Hong Kong and HKUST? Why can't three institutions be merged?'

He warned that funding for universities should be based on merit and not be subject to favouritism.

Professor Li proposed the idea of a merger between the universities last October, two months after he took up his ministerial position.

But he was known to be in favour of such a merger while head of Chinese University.

Professor Lui also said that HKUST's founding mission of being a specialist institution focusing on research was incompatible with Chinese University's position as a comprehensive 'generalist' institution.

But he dismissed suggestions from some Chinese University staff that it could take over HKUST to maintain Chinese University's own tradition or raise money by selling the HKUST campus.

'That is unlikely to happen because it will not be acceptable to most people,' he said.

An HKUST taskforce on a merger decided late last year that it would wait until the government had clarified its position on issues, such as funding implications, before further pursuing the merger idea.

Gary Biddle, an HKUST council member and associate dean of the School of Business and Management, said a merger would be costly and detrimental to the development of higher education in Hong Kong. 'Should it happen, good faculties will leave Hong Kong, while the weak faculties will stay.'

Surveys at HKUST showed that 86 per cent of its faculty, 84 per cent of staff and 85 per cent of students oppose a merger.

The different remuneration and promotion systems at both universities are known to be big concerns to HKUST staff.

* For more stories, read the news section of the South China Morning Post.

Glossary

undue (adj) greater than reasonable

impartiality (n) fairness, freedom from bias

conflict of interest (n) a situation in which a public official's decisions are influenced by his or her personal interests Example: Secretary for Financial Services and the Treasury Frederick Ma Si-hang told a Legco meeting yesterday that he had no conflict of interest over a stock exchange investigation into PCCW. Mr Ma used to work for the telecommunication operator. (SCMP, February 27, 2003)

incompatible (adj) inconsistent and conflicting

detrimental (adj) causing damage and harm

Discussion points

- What should be the objectives of tertiary education?

- How many world-class research universities does Hong Kong need?

- Is a merger the best path for universities to take in the face of the huge budget deficit?

- Is it possible to maintain the character of a school once it has merged with another?

- What would you suggest the universities do to maintain their autonomy and solve resource constraints?

Give reasons with your answers.