No. 533.
Encl. No. 1.
Encl. No. 2.
Sir,
9
GOVERNMENT HOUSE.
HONG KONG. 23rd December, 1931.
With reference to Lord Passfield's despatch
No.94 of the 23rd of March, 1931, on the subject of
the Government loan to the Diocesan Boys' School, I
have the honour to forward a petition from the Committee of the School asking that the loan and all outstanding interest and sinking fund charges be cancelled. A copy of the Balance Sheet and state
of the Working and Profits and Loss Account for first nine months of this year is also enclosed. circumstances under which the loan was originally made were fully set out in Sir Cecil Clementi's despatch No.61 of the 11th of February, 1927.
The
2. The main argument advanced by the petitioners in support of their claim is that the only alternative to cancellation of the loan is the closing of the
school, with the consequential loss to British prestige
and educational culture in the Far East.
う。 This contention is not wholly correct.
Government has made to the School an offer which, whilst
it would enable the School to repay the loan in full,
30127/27
THE RIGHT HONOURABLE
SIR P. CUNLIFFE-LISTER, G.B.E., M.C., M.P.,
&C.,
&c.,
&c.
would
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