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it is not correct to say that the Government has made a grant for
the Chinese Department of $46,000. The Cantonese Language Class.
represents work which the University is doing for Government at
Government's request and at Government's expense. The University
is quite willing to continue this work but it must be remembered,
in this connection, that this class is dependent on the cadets
continuing to be sent to the University. If Government decide to
discontinue the sending of the cadets to the University this class
will have to cease.
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7. His Excellency has noted that he is willing to include in the
1930 estimates a vote of $40,000 as a subsidy for the Chinese School
as a whole. He has added that the University authorities should
endeavour so to adjust their budget that this sum may also suffice
to supply $1,200 a year for scholarships tenable in the Chinese
Department. In the estimates for the cost of the Chinese School
which were submitted last year provision was made for a Principal's
salary and his house allowance. No principal has as yet been
appointed. If we postpone indefinitely the proposal to appoint
a principal then the annual cost of the Chinese School (including
the Cantonese Class) could be covered by a special annual Govern-
ment grant of $40,000 plus the interest on the sum of $200,000
which the University has been promised as an endowment for the
Chinese School. But without some assurance that a Government grant
of at least $40,000 will be annually forthcoming the University
cannot undertake the financial responsibility of maintaining the
School.
8.
The course of the Chinese Department covers four years.
Therefore, if the Chinese Department is to be continued, the Uni-
versity must accept annually for the next three years the respons-
ibility for adding each year an additional class and of providing
for each new batch of students as it comes in instruction which
must cover at least four years. Therefore it is no use asking
Government this stage to guarantee the grant for another three
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