CO129-561-1 Tung Wah and associated hospitals- financial problems 9-9-1937 - 2-10-1937 — Page 4

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sakert to the

approval of the Funnel

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amit

investigate the actual working of the

institution.

The immediate proposal is that the

Colonial Government should guarantee an over-

draft for the Corporation to the extent of

$60,000. I think it is clear that the

Government cannot allow these hospitals to

default and that they form a necessary part

of the medical organization. In this case I

think we shall have to approve the suggestion.

It appears to me, however, that we should press

for increased Government control of the actual

administration of these hospitals.

Though

this may raise difficulties with the Board of

Directors, it seems clear that their

administration, both financial and possibly from

the medical point of view also, is unsatisfactory,

and I suggest that there is no point in

continuing Government grants to bolster up a

Board of this kind, and that it would be best,

even at increased cost to Government, to take

over the hospitals if necessary and put them

on a satisfactory basis. To do this, a

Commission such as was suggested by the 0.A.G.

seems a useful preliminary.

pout quamanter of an

? Telegraph approval of the overdraft

of $60,000 and add that the Secretary of State

would be in favour of the appointment of a

Commission to enquire into the working of the

Corporation and that he would be prepared to

consider largely increased Government control

in view of the apparently unsatisfactory nature

of the present system/

system/

P. Rayers

22 1x 37.