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16. The temporary departments, such as the Custodian of Property Department and the Supplies, Trade & Industry Department, which do not normally form part of the Colonial Government machine, are not running down as rapidly as was hoped. Of the former, only a comparatively small organisation now remains but SCAP insists that Japanese trade should be conducted on a Government to Government basis, thus preventing much progress being made in reducing the staff of the latter department.
17.
Points calling for comment in the departmental expenditure estimates have been dealt with in detail in the Memorandum on the Estimates, copies of which are enclosed with this despatch, but there are certain developments to which I should like to draw your attention. The title of the Directorate of Air Services has been changed to Civil Aviation Department. A general increase in staff is being provided for to meet the considerable rise in the volume of air traffic which is now including Hong Kong in its itinerary. Formerly R.A.F. personnel were responsible for manning a number of control and radio services, but these have now been withdrawn and it has been necessary to engage civilian staff to replace them. A corresponding increase has been necessary in the staff of the Royal Observatory, which is responsible for the increasing number of meteorological reports required for civil aviation purposes.
18.
Under the Education Head, the increase in the number of subsidized vernacular schools has necessitated the appointment of one additional Inspector of Vernacular Schools and one Woman Inspector of Vernacular Schools. Provision is also made under this Head for financial assistance to former members of the local Forces whose university education was interrupted by the outbreak of hostilities. It is only proposed to provide financial assistance in cases where the student is not able to bear the full cost of the University course himself, and it will be for the University authorities to recommend the proportion
which should be met from Government funds.
19.
A considerable increase under the Sub He ad "Subsistence Allowances for Uncertificated Teachers in Training" has been provided .for because it has been found that uncertificated teachers are not prepared to undergo the necessary training for their certificates if, while doing so,
they only receive a subsistence allowance of a smaller amount than their salaries as uncertificated teachers. induce them to take the higher qualification and to obviate a shortage of certificated teachers in the future, it will be necessary to continue their existing rates of salary while they are in training.
To
20. Included in the Special Expenditure of the Education Department is provision of nearly $1,500,000 for building grants to non-Government schools. This includes a grant of one million dollars which represents half the cost of the construction of an additional school which the Wah Yan College proposes to establish in Kowloon to accommodate 1,000 students. It also provides for grants representing half the cost of extensions to four other schools. developments should reduce the waiting lists of students endeavouring to secure admission to schools.
The se
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