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Government assumes such a degree of responsibility as we recommend.

We are convinced that a general public miągiving

and want of confidence regarding the management of the

finances has hitherto withheld the support which would other-

wise have been forthcoming from both British and Chinese.

Sir John Jordan's optimistic reference, in his

recent speech here, to the possibility of part of the Boxer

indemnity being devoted to the University, prompte us to

suggest that the Hongkong Goverment should do anything in

its power to bring this about.

We have included in our estimate $30,000 a year

for interest at 6 per cent on the bank overdraft. We can only advise that, for the present, this overdraft be continued, the

rate of interest being low; and that as soon as the financiel

position allows, a sinking fund be established to pay it off.

Te have included provision for a fresh sinking

fund to repay Mr. Loke Yew's loan.

We have also included $6,000 a year for repairs to

University buildings, but we have not inserted anything for depreciation. Repairs to hostels are paid out of their

separate accounts, and are allowed for in their estimated profits.

6. SOME GENERAL OBSERVATIONS.

We recommend the formation of an Employment Committee for assisting graduates to get suitable appoint- mente. The committee we have in mind would comprise repre- sentatives of the principal employers, such as Messrs.Jardine Matheson & Co., Messre. Butterfield & Swire, the Dock Company, the Public Works Department, and a few others, in addition to the three Deans. We think such a body would be of special advantage to the Engineering graduates, and could also help

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