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Hong Kong that it is not possible

to accord to the school such exceptional

treatment as would be' implied by

cancelling the Government loan and all

outstanding interest and sinking fund

charges.

3. Sir Philip Cunliffe-Lister

trusts that the Committee of the School

will now give careful consideration

to the proposal which has been made by

the Hong Kong Government which would

enable the school to continue on

more modest lines on another site, or that

alternatively, the Committee may be able to

obtain the finance

necessary to continue

the school on its present lines without

relying solely on exceptional terms from

the Government.

I am,

etc.

(Signed) H. R. OOWELL

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