CO129-575-16 Tung Wah hospital 9-2-1939 - 17-11-1939 — Page 6

1)

2)

3)

The Government grant for 1939 to be

increased from $121,000 to $320,000.

The reimbursement by the Government of

special expenditure actually incurred, up

to a maximum of $80,000.

The acceptance as a charge upon public

funds of the deficit for 1938, at a cost

to Government of $100,000.

If these measures are approved and special

mati num

expenditure is incurred up to the data, the

hospitals' revenue will amount to $706,100, which would

reduce their estimated deficit to $121,641; but

there would be no deficits hanging over from 1937

or 1938. At the same time a provisional grant of

$350,000 in respect of 1940 has been included in the

Colony's estimates for 1940-1941.

The policy suggested by the Governor is that

the annual Government grant should vary from year to

year according to the probable needs of the hospitals

disclosed by their annual budget. It seems to me

we must accept the fact that the Colonial Government

must accept more and more responsibility for these

hospitals, and the only way to do this and, at the

same time, keep the hospitals on a voluntary basis

for it is important that this principle should be

maintained

suggestion.

seems to be by accepting the Governor's

The agreement reached in 1938 does I think

give the Government a sufficient measure of control

over the hospitals' finances and general administration,

and/