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were informed that Goverment saw no objection provided that the Goverment was in no way involved.

3.

The demand for the money came, however, at unexpectedly short notice and owing to the financial stringency then prevailing, the Chinese Merchants concerned were not in a position to meet it within the time specified without action which would have attracted undesirable attention. It was accordingly sugested by those interested among whom were the Chairman and Vice-Chairman of the Tung Wah Hospital Committee, for the year, that the sum of $50,000 should be temporarily advanced from the funds of this Charitable Institution. The Chinese Members of Legislative Council agreed, the money was handed over and a receipt signed by them and some eight or nine of the other merchants concerned, and in due course the funds were remitted to a native bank in Canton.

These arrangements were made over a week-end, and duly reported to Government by the Chinese Members of the Legislative Council on the following Monday.

4.

The coup d'état failed and the financial stringency in the Colony being in no way abated, the merchants, with the exception of one who paid up his $10,000 were unable to fulfil their promises to the founders of the venture.

Action in the matter of the advance was nevertheless not immediately necessary; but when the Committee of the Tung Wah Hospital for 1925 had to balance their accounts for the purpose of handing over to the 1926 Committee, repayment became imperative.

5.

In order to adjust the Hospital Funds and to prevent the unfortunate results which might have arisen from a disclosure of the facts at that moment, I decided, in the absence of any other available funds, to make an

advance

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