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41. The population of Kowloon numbers about 300,000. For the education of the sons of the Chinese section of this population the Government has provided one out-of- date District School at Yaumati, which is one of the most congested areas in the peninsula. It may be remarked in passing that not even this much provision is made for the education of the Chinese girls. Further, while cognisant of the fact that the Diocesan Boys' School has filled an important place in the educational life of the Colony, the Commissioners cannot but wonder how Government reconciles its liberality in granting to the school this large site (covering as it does twenty three acres) and the sum of $175,000, while it permits the Central British School, where 210 boys and girls are educated, to be housed in a jumbled up collection of wooden huts with no proper school amenities.

42. The Commissioners even at this late date would suggest that it might yet be possible to take over the Diocesan Boys' School as the new Central British School, sell that portion of the ground not required and, with part of the one million dollars which it is at present proposed to spend on the erection of the new Central British School, to provide instead a school for the Diocesan Boys in a building and situation more com- mensurate with the resources of that institution, and on a less ambitious scale than the existing building. From an inspection of the present premises it can be realised that the School has been built and the grounds laid out in the most lavish manner, with the result that the upkeep will be a heavy annual charge, and one which will very likely and from time to time cause applications to be made for further aid from the public funds of the Colony. Although such assistance on the part of the Government might be considered a laudable action, the Commissioners feel that it would be unfair to finance only one single institution when it might mean neglect of the elementary education of those thousands for whom the Government at present does nothing, though the Commission considers that it will be compelled to do so in the future. The Commissioners would at this juncture point out that they can find no record in the Reports of the Director of Education or of the Inspectors of English Schools of these officers having in any way commented upon the heavy expenditure on buildings by the Diocesan Boys' School, nor do they appear to have foreseen a possible default in the repayments to the Government, although they must have had sufficient details and statements of account to have realised the financial situation of the institution in question

43. The Commissioners would finally suggest that, if such an arrangement can be arrived at, the proceeds of the sale of the site of the present Central British School, together with the balance, after providing for the Diocesan Boys' School, of the one million dollars proposed for the erection of the new Central British School, be earmarked in the future, and as the finances of the Colony permit, to provide establishments which will be necessary for the provision of elementary education for the children of the Chinese residents of the Kowloon peninsula.

TREASURY.

Considered purely as a department the Treasury is not in the opinion of the Com- missioners overstaffed. The amount of revenue received over the counter at the Treasury is about 12 lakhs monthly and for each payment a receipt has to be given at the time. The Commissioners are glad to learn that it is proposed to instal machines for the issue of these receipts. Not only will this enable some reduction in clerical staff to be made, but it will enable receipts to be issued with the minimum of delay. Apart from this the Commissioners do not recommend any reduction, as they feel that it would only result in a loss in efficiency and hence in revenue.

2. The Commissioners consider that enough importance has not been attached in the past to the post of Treasurer, and that it is probably due to this that he has not taken his proper place in the administration of the Colony. The functions of the Treasurer are most important. Not only is he the financial adviser to Government, but he is the custodian of the Government's money. He should therefore warn Government if he considers that any proposed expenditure is financially undesirable, and in the event of his expressed opinion being over-ruled he should request the Government to forward his representations to the Secretary of State for the Colonies. The fact that he is a servant of the Government should not mean that he is only to give his opinion on financial matters when it is asked. He should give it whenever, in his capacity as Treasurer, he deems it necessary.

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