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disturbing factor, to overcome which, continuity of possession
of its new buildings was essential. The School had actually
been in occupation for ten months only when it was compelled
to vacate the premises, which were required by the Military
Authorities for use as a Hospital, in consequence of the
presence in the Colony of a large number of troops forming
part of the Shanghai Defence Force, who were stationed on the
mainland.
(17) The period of this dislocation was approximately
twelve months, during which time the School was forced to
occupy premises of an entirely unsuitable nature and it will
be readily realized that its financial troubles were further
aggravated as a result.
(18) The necessity for putting the School on its feet
fi nanci ally has received the Committee's anxious consideration
for some time past. Suggestions have been made by the Hong
Kong Government which the School Committee have found themselves
unable to accept as they would have involved the extinction of
the School as an individual unit of the character which it now
has, and which it is felt to be most important to retain.
(19) The possibilities of retrenchment and economy have
been explored, but a thorough investigation has shown that the
School is administered as economically as possible.
(20) The possibility of augmenting its income by an
increase in fees has also received careful consideration. No
increase is possible at the present time, as the School is to
a large extent on a competitive basis.
(21) It might be suggested that a saving could be effected
if it did not take free boarders or grant free education or
education on reduced terms in connection with the Eurasian
Orphans and others which it receives. The saving on this score