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Sec. 6/2041/48.

SAVINGRAM

To the Secretary of State for the Colonies.

From the Governor, Hong Kong.

Date Ind No. 739.

November, 1943.

Ansert (22) 53923/48

Education Subsidy Code.

25 19

The Subsidy Code which was approved in Lord Moyne's despatch No. 78 of 30th June,1941, has now been revised and I enclose ten copies of the revised code. Apart from a number of minor

amendments, it will beseen that the principal revision is the amendment of the salaries, upon which the computation of subsidies is partly based, to two thirds of the equivalent rates paid to Government servants, following upon the revision of salaries for Government servants and the staff in Grant Schools. It is also considered desirable that the Director of Education should be able to authorise building grants in excess of 50 per cent of the total cost, in suitable cases, where the total cost is less than $20,000.

The possibility of making a fundamental change in the Subsidy Code by the introduction of block grants is being kept in view, but in view of your remarks in paragraph 2 of your savingram No.1010 of 8th October,1948, concerning a similar suggestion in respect of the Grant Code, the revised Subsidy Code is submitted in its present form for your approval.

2.

C&M.

YATZIO.

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