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the Hong Kong Dollar, which had averaged 2/- for some years, fell during 1929 and 1930 until it reached a level of just under 1/- and its value has remained at this figure during
the greater part of 1931. The cost of education, therefore,
per head, in terms of Sterling, has not risen materially in
spite of the increased Dollar cost. The School itself has
suffered materially from this drop in value of the Dollar in that payments for Passages and Home Leave have practically doubled in terms of Dollars, and in this connection an
important point to be recorded is that Masters on Sterling
pay while in the Colony have received no compensation for the
drop in the Dollar. It is only while on Home Leave that
salary payments are made in Sterling at the current rate. No
compensating increase in Income has been received to offset
items of "Passages" and pay on leave, the Government Grant,
for example, has remained the same in Dollars.
(27) The continuation of the School as a separate Unit
depends entirely on the attitude likely to be taken up by the
Government in connection with the loan to the School, the
Interest and Sinking Fund on which are a burden which it is
unable to meet.
(28) A cancellation of the loan of $175,000.- plus
Interest and Sinking Fund payments from 30th June 1930 would enable the School to carry on, in spite of general World conditions, provided it encountered no further dislocation
from outside political disturbances, but in order to enable
it to be developed as it should be and to compensate its Teaching Staff adequately, further assistance in the way of an Annual Grant from the Government of Hong Kong is needed. (29) The Committee of the School had anticipated that