CO129-575-16 Tung Wah hospital 9-2-1939 - 17-11-1939 — Page 4

4

Revenue.

over the last three years have been as follows:-

Expenditure.

Deficit.

$

#

1937

1938

1939

428183

581,960

153,777

491968

597,968

106,000

427100

827741

400,641

7/38 this file

See (12) on

9 (1)m the

Government grants in 1937 amounted to

$91,000. No separate figures are shown in the 1938

estimates for the 1938 grants, but they certainly totalled more than the 1937 grants; and provision was

made in the 1939 estimates for a grant of $121,000.

The decrease in revenue is partly due to the falling

off in charitable donations which have been largely

diverted to war charities in China.

When the Hong Kong Government agreed to

wipe out the 1937 deficit by accepting it as a

charge upon the Colony's funds in 1938 they stipulated

certain conditions which would give the Government

a measure of control over the hospitals'administration

commensurate with the increasing assistance which

they foresaw would have to be given to the hospitals

in the future. These conditions are set out in the

Governor's despatch at (1) on this file, and that the

Government realised the full measure of responsibility

it was shouldering is evident from paragraph 11

of the despatch at (12) on 53556/38, in which the Governor wrote that"if that scheme (i. e. for the reorganisation of the hospitals) is accepted it is

inevitable that a large increase in the regular

annual grant will be needed for an indefinite time

to come, both in order to meet the deficit on the

present basis and to pay for the improvements in the

quality or the service of these hospitals which is

expected/