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2.

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a small action indicative of the hostility of some of the

officials at Esinking to our Consular activities.

2. The issue of this order, though regrettable in

principle, served a useful purpose since it eliminated the

likelihood of claims being brought by parente of pupils

against the headmasters for breach of contract. Locally the

Consular position is not affected as it was at the desire of

the Special Delegate that all necessary arrangemente were

made direct between this office and the two school principals.

3. The sum of H.Y. 8000 was handed to me with the request that I should distribute the ex gratis payment in a

fair manner. I was not anxious to have anything to do with

thie financial transaction but the authorities were most

reluctant to pay the money to the principala direct as they

had grave doubts whether the arrears of teachers' galaries

would be settled. From an examination of the list of moneys

owed by both institutione, and in order to avoid, if possible,

suits in thie Consular Court for debts, it seemed to me

evident that the beat interests of the principals would be

served by an insistence that outstanding obligatione should

first be liquidated. I accordingly arranged that each teacher

and school servant should be paid salary until the end of 1938 and that priority should be given to the settlement of

public service claims, such as those for water, electricity

etc. An undischarged judgment debt against Er Lindsley was

also settled and the remainder of each M.Y. 4000 is being used

to liquidate claims and to form a small reserve fund for each

man. These arrangements were readily agreed to by both principals. The closing of the schools has in fact proved to

be financially advantageous to both Spence and Lindsley as

neither had any prospect of making sufficient money to pay

off debts. They will be permitted to restart as language

instructore

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