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derived from house rents and mortgage interest the return
from which has during recent years shown a serious decline.
The demands on the public from the Colony's numerous
charitable organizations have at the same time increased
to such an extent that it has become more and more difficult
to supplement funds by any general appeal.
4.
The 1937 Board of Directors on taking office
early this year found themselves faced by a serious deficit
carried forward from the previous year, this, coupled with
additional running expenses due to an increase in the number
of patients and a further serious decline in revenue has
rendered the hospitals insolvent. A preliminary investigation
conducted by the Secretary for Chinese Affairs with the
voluntary help of an officer from the Audit Department
discloses an estimated deficit for the year of approximately
$250,000.
5.
I have appointed a small Committee consisting of
the manager of one of the principal Chinese Banks in the
Colony and of two Chinese auditors one of whom is a qualified
accountant to investigate the books and to draw up a statement
showing more completely the actual financial position of the
Corporation; meanwhile some assistance is necessary in order
that the hospitals may not be forced to default, and I propose,
subject to your concurrence, and to that of the Finance
Committee which is now being sought, to provide this in the
form of a guarantee of an overdraft to the extent of $60,000,
the sum considered necessary to carry the hospitals to the
end of September when the Committee's report is expected.
6.
I put forward this proposal on the advice of the
Financial Secretary rather than a proposal for a grant from
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