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and providing directly as it does for the feeding of the

students in the University hostels a considerable amount of

work is thrown upon the office in this connexion. Then are

also all sorts of scholarship and annuity holders among the

students and a separate account has to be kept fore ach of

these. Then there is all the office work connected with the

Leetings of the University Court, the University Council, and

the Senate, not to mention various other University Committees.

The office has also to conduct an annual system of school

examination including the Matriculation. In a note

attached to my previous letter I have explained the position.

The office is now hopelessly understaffed and any expansion

of the University will make the increase of the office

staff inevitable. I may add that the Vice-Chancellor ought

to make occasional tours for the purpose of keeping in

touch with educational institutions and needs in China and

elsewhere. The Vice-Chancellor is now so absorbed in urgent

administrative work that he can seldom leave Hong Kong, not

even during the long vacation. To put the working of the

central office on a reasonably sound footing an annual sum

of $16,000 is required. This may be roughly represented by

£1,600, but all the additional payments involved would be in Hong Kong dollars.

15.

To recapitulate our most urgent demands.

The Chinese Faculty involves a capital outlay of about

$1,150,000 or an annual expenditure of $80,000 or £8,000.

The reduced scholarship proposals involves an initial annual

expenditure of $34,400 or £3,440 and a final annual cost of

$100,000 or £10,000. The additional assistance imediately

required for the Professor of Education will cost annually

12,000 or £1,200. The necessary new buildings involve a

capital sum of $1,220,000 or £122,500. During the first

year of the building operations a sum of $500,000 or £50,000

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