CO129-575-16 Tung Wah hospital 9-2-1939 - 17-11-1939 — Page 5

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expected to follow."

The present despatch now

discloses the extent of the increased cost to

Government of this increased efficiency.

The budget for 1939 which was prepared

in accordance with the agreement reported in (1)

on this file shows an estimated income of $427,100

(including a Government grant of $121,000) and an

estimated expenditure of $827,741, viz., $786,895

for medical work and $40,846 for charitable work

and certain administration expenses. The increase

in expenditure of $229,773 as compared with 1938

is stated to be due partly to the continued increase

in the work which the hospitals are called upon to

undertake and partly to the higher standard of

maintenance and supervision which the newly

constituted medical committee has aimed at

establishing. The estimate also includes $80,000

on special expenditure necessitated by the

determination to secure greater efficiency from the

medical point of view.

At first the hospital Directors would

only accept the budget if the Government would

undertake to make up the deficit; but since this

was expected to amount to $400,641 the Governor quite

rightly found it impossible to give such an under-

taking, particularly since the assurance of virtually

unlimited support must have meant a relaxation in

their efforts to secure public subscriptions. But

as it is recognised that there must be a substantial

further increase in Government assistance if the

improvements are to be maintained, the Governor has

put forward instead the following proposals:

1)