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(e) We are of opinion that the Paramount and Cathay Hotels should not be brought under control as they are in the nature of luxury hotels essentially catering for wealthy Chinese.

(ii) Rates for Food.

We recommend that the rate of $5.50 per day for food be the maximum which "resident guests" should be charged.

(iii) Services and Extra Charges.

(a) Services. The services normally supplied by hotels of this type

during 1941 should continue.

II.

(b) Extra Charges. A schedule of permitted charges for the use of electrical appliances has been prepared and is attached, Appendix The use of any of these appliances is at the discretion of the Management. We strongly deprecate the use of any cooking ap- pliances in bedrooms.

(c) Children under the age of three years. It is recommended that no charge for accommodation should be made for children of this age provided that Management is not called upon to supply either bed, bedding and/or linen.

(d) Children over three and under ten years of age. It is recom-

mended that half rates for accommodation should be charged.

14. CHINESE HOTELS AND BOARDING HOUSES.

(a) These establishments are those which cater essentially for Chinese

guests.

(b) Hotels and boarding houses of this kind are licensed by the

Secretary for Chinese Affairs and are classified as follows:-

(i) Tsau Tim (L)

(ii) Hak U()

(iii) San Hak Chan () and

(iv) Hang Shun Kun (1),

(c) We recommend that Hang Shun Kun() should be exempt

from control as these are in the nature of a non-commercial institution and operated as a sailor's home.

(d) With the exception of the Hang Shun Kun () the guests in these hotels and boarding houses are of the transient and emigrant type. As these hotels do not cater for residents in our opinion no recommendation is called for at present.

(e) Charges cover accommodation and services; no meals are provided except when a restaurant is attached to the hotel. In this latter case meals are served "a la carte" and charged for separately. (ƒ) It has been represented to us that approximately 30% of the rooms in hotels and boarding houses are normally vacant. We have no cause to disbelieve this.

(g) Despite the fact that these hotels serve transients and emigrants, we recommend that 10% of the accommodation in the bigger hotels should be made available, as a trial, for Chinese "resident guests" at the prevailing rate of charges less 30%.

NOTE: Since preparing the comments in paragraphs (ƒ) and (g) above, the accommodation situation has altered due to a further influx of persons into the Colony. Neverthe- less we place our comments on record in case the situation should revert to that existing as at the be- ginning of November.

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