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the school on its present site. it is quite

possible that if their hand is forced, the

Managers may have to give up the site, get what

they can for the buildings, and divert their

attention from secondary education.

5.

In the present financial circumstances,

and more particularly with reference to the line

taken in the Retrenchment Committee Report,

it would be useless, I imagine, to consider even

the possibility of remitting the loan. But

I suggest that the Government ought to be invited

to consider rather more seriously than they have

done the desirability of raising their annual

grant to the school with special reference to its

present financial embarrassment and the claims

that it has for preferential treatment. This

would be quite in accordance with the general

policy advocated in the Grant-in-Aia Memorandum

of the Advisory Committee on Education, significant

extracts from which have been quoted in the

Managing Committee's letter. Would it not be

possible for the Government to remit, say for

a period of ten years, payment by the school

of the interest and sinking fund charges on the

loan,

and to treat such remission as an annual

addition to the grant? From the accounts point

of view it would probably be easier to remit

a payment of $14,000 per annum than to increase

the estimates with a view to payment of en

additional grant to this extent, though if that

additional grant were spent in payment of the

interest, it would, of course, come to the same

think in

in the end.. In support of this suggestion

the accounts of the school require careful

consideration.

From the accounts for a nine

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