possible should be done to avoid the closing

down of the School.

A decision having that

8

effect would almost certainly be the subject of

criticism.

It appears to be beyond question that

the School is doing a good work, though, not

unnaturally, the School authorities rate the

value of their activities more highly thun does

the Governor.

A perusal of the names in the

School Register which will be found on pages

179-204 of the "History and Records" sent as a

subenclosure to the despatch, makes it clear

that the great majority of pupils are Chinese.

Sun Yet Sen was a Day Boy in 1883.

The School had very bad luck in the

failure of two successive purchasers of its

former site and in the fall of land values which

followed. This resulted in the sale of the

after site to the Government) at a price which, withsout

taking into account$ 95,000 forfeited by the second purchaser, left a deficit of $131,866

on the original purchase price. The addition

to this deficit of $40,000 expended by the School

in interest on temporary loans etc, which had

t

to be raised as a result of the purchasers

default, made up the deficit to $171,866 which

was wiped out by the Government loan of $175,000.

The factor which secured the Secretary of State's

concurrence in this loan was the undesirability

of an English institution being indebted at my theat

time to Chinese contractors.

Ten months after the occupation of the

new buildings, the School suffered a further

set-back, through the occupation of these buildings

for

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