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can be done at a cost of $180 per annum.

The larger portion of the building at

Tung Lung Chau is used as quarters by Mr Bullin, First Clerk

in the Registrar-General's Office. But as he is not entitled

to quarters his vacating them need present no difficulty.

6.

The total expenditure which the opening

of the British School will involve in the first year is $8,360

including $2,000 capital expenditure on furniture as shown in

the enclosed schedule. In subsequent years, until the growth

of the establishment necessitates revised arrangements for it,

the expenditure will be $6,360. It is anticipated that at

least 50 children will attend the school as soon as it is

opened. On the same scale of fees as obtain in the Kowloon

British School the revenue should amount to about $1,850, so

that the net annual cost to Government will be about $4,510.

I have the honour to be,

Sir,

Your most obedient

Humble servant,

Mr. Bathan

Governor, &c..

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