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Enclosure No.5
this force, which was controlled by the Secretary for
Chinese Affairs, was maintained from a fund made up of
contributions from various sources. Since the re-occupation
the resources of the force have been insufficient for its
maintenance and it is felt that it would not be proper to
revert to the pre-war system of collecting subscriptions
privately for this purpose. The force has in the past
performed the useful function of supplementing the regular
police force in certain districts, but no further
recruitment will be carried out. The intention is that
it should be gradually reduced in numbers until a figure
is reached which is sufficient for the carrying out of the
investigation and other duties required by the Secretariat
for Chinese Affairs.
26.
As has been stated earlier in this despatch, it
is the intention that the special rehabilitation expenditure
for the current year, amounting to approximately sixty
million, should be met from the proposed new loan. The
details concerning this expenditure are set out in the
attached schedule, from which it will be seen that the
largest item is for the repair of buildings and the
construction of new quarters to replace the large number
which were damaged beyond repair. The item relating to
the restoration of damaged non-Government buildings is
intended to provide funds for the repair of residential
accommodation which has been taken over on a three- or
five-year lease in order to provide much needed accommoda-
tion for Government officials. It has proved more
economical to lease a few looted buildings of this type
at a reduced rental and repair them at Government expense
rather than to meet the cost of hotel accommodation for
an equivalent number of officers.
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