Mr. Bickle /3/11/35.

Mr.

Mr.

Sir C. Parkinson.

Sir G. Tomlinson

Sir C. Bottomley.

Sir J. Shuckburgh

ts

53556/35 Hong Kong

8

Downing Street,

November, 1935.

19

Permt. U.S. of S.

Parly. U.S. of S.

Secretary of State.

(4)

DRAFT.

HONG KONG

NO.

O.A.G.

481.

FURTHER ACTION.

Sir,

I have etc., to acknowledge

the receipt of your despatch No. 544

of the 2nd of October relating to the

control of the finances of the Tung Wah

Hospital, the Kwong Wah Hospital and

the Tung Wah Eastern Hospital. I have

noted the arrangements which have been

made as indicated in paragraph 5 of

the

you despatch.

2. Opportunity will no doubt be

taken as occasion offers in the future

placing

for such pressure as may be

possible upon the Directors with a

view to effecting further reforms.

I have etc.,

(8gd.) MALCOLM MacDONAL

Page

Page

No. 544.

Sir,

GOVERNMENT HOUSE,

HONG KONG,

RECEIVED

4-NOV 1935

O. O. REGY

2nd October, 1935.

FB.

I have the honour to acknowledge the receipt of

your despatch No.307 of the 8th August regarding the financial

assistance granted from public funds to the Tung Wah Hospital,

the Kwong Wah Hospital and the Tung Wah Eastern Hospital and

to address you on the subject of the greater financial control

of expenditure as foreshadowed in the final paragraph of Sir William Peel's despatch No.66 of the 30th January.

2.

ن

The special collection mentioned in paragraphs 6

and 7 of that despatch and raised between 17th September, 1934,

(the date on which the Advisory Committee and the Directors

of the Hospitals at a joint meeting unanimously approved that

an appeal should be made to the Government for financial help)

and the 31st December, 1934, amounted to $47,482. A grant of

the equivalent amount was accordingly made to the Directors

on the 2nd March, 1935.

3. It was not found feasible to defer the payment

of this grant until a scheme for the better financial control

of expenditure had been devised and put into operation for

the following reasons. In spite of the promise that financial

assistance would be recommended, there was considerable

difficulty in securing persons willing to stand for election

as Directors for this year. The 1934 Directors consented

after much persuasion to continue in office for a short period

THE RIGHT HONOURABLE

MALCOLM MACDONALD, M.P.,

in

&c.,

&C.,

&c.

9

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Page

2.

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1/72746/20

3

153518/55

1/72944/2

30

in January and February but even then it was evident that

the election could not take place for some considerable

time. The opportunity was therefore taken of amending

Ordinance No.31 of 1930 so as to reduce the unwieldy

size of the Directorate and also to allow the appointment

of a sufficient number of temporary Directors to carry

on in an emergency. This took the form of Ordinance No.6

of 1935 and, in connection therewith, I would invite

your attention to Sir William Peel's despatch No.130 of

the 4th March, 1935. As financial assistance was urgently

needed by the Hospitals, the grant as mentioned above

was made on the 2nd March, but the new Committee which

took office on the same day was forthwith reminded of

the necessity for devising a scheme for the better control

of expenditure.

4. It was and still is the opinion of the

Government that the Advisory Board appointed under section

11 of Ordinance No.31 of 1930 should take a more active

part in the control of the Hospitals particularly on the

financial side. A scheme such as the appointment of a

Finance Committee to be composed of representatives of

the Board of Directors and the Advisory Board had already

been the subject of mention and it was hoped that some

scheme on these lines would be acceptable.

5.

Various conferences were held between the

Directors and the Advisory Board and a number of proposals

were put forward for discussion. Finally after considerable

negotiations the agreement of the Directors was secured

on the following terms: -

(1) A qualified accountant shall be engaged to look

after the books of the three Hospitals.

(2)

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