Sir,

COPY

The Bishop's house,

HONG KONG.

31st January, 1940.

With reference to your letter No. 2820/1938

dated 6th December, 1939, to the Secretary of the

Grant-in-Aid Schools Council and Memo dated 18th

January, 1940, the Revised Grant Code.

1.

We wish to make the following observations:-

Acceptance.

The Grant in Aid School Council, on behalf

of the various Grant in Aid Schools, wish hereby to

state that they are prepared to accept for the time

being the Revised Code.

They wish, however, to state that they are

still convinced that, from an educational point of

view as well as from a financial point of view, the

particular way in which income and expenditure are

taken into account in the new Code will prove, on the

one hand, uneconomic, and on the other will tend

inevitably to undue standardisation (See particularly

page 3 of our Memorandum of December 11th, 1939.)

In view, however, of the readiness of

Government to make better conditions for the staff of

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