23

regard to the vast total of the expenditure already

provided for in the current year, to the inevitable

increase in the rate of expenditure as the war

proceeds, and to the heavy increases in taxation

which have already been imposed, His Majesty's

Government have been forced to the conclusion

that it will be necessary to eliminate for the

duration of the present hostilities all those

services which are not essential to war require-

ments or other pressing public needs.

3%

I have accordingly to request that

careful consideration may be given in the light of the

above considerations to the possibility of

replacing the usual annual grant of £300 from

United Kingdom funds towards the provision of King

Edward VII Scholarships by temporary special grants

from Hong Kong funds, and that I may be furnished

with your early observations on this suggestion

by telegram. I deeply regret the necessity for

having to approach you with this suggestion, but

you will no doubt appreciate that the temporary

4 Are Ge gdem grant (for

cessation of the United Kingdom grant/for the

duration of the war would in no way imply any

diminution/

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