CO129-623-5 Supplementary Expenditure- grants and loans to schools 1-3-1950 - 31-3-1950 — Page 6

Ent

INWARD TELEGRAM

TO THE SECRETARY OF STATE FOR THE COLONIES

MAR

XII

Code

COPY FOR REGISTRATION

FROM HONG KONG (Sir A. Grantham)

D. 6th March, 1950. R. 6th

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11.00 hrs.

No. 232.

1950

1 I

Π

a

Interest-free loans to schools.

St. Mary's School proposes to build a largé extension to provide for urgently needed staff room, Laboratory, hall, library, gymnasium and about twenty classrooms to replace those housed in the old buildings. The estimated cost of the project is $1,200,000 and the school has asked for an interest-free loan of $600,000 repayable after three years in ten equal instalments.

2. The school would normally have a strong claim

The for a grant of half the cost of the new building. request for a loan relieves the Government of any cost other than the interest foregone on the loan and the difference between the building depreciation grant on the new as compared with the old building which is The estimated at not more than $20,000 per annum. scheme does not provide for any increase in the number of classrooms and consequently the Government is not committed to any future increase in the recurrent grant.

3. Application has also been received from Diocesan Boys and Girls Schools for loan for similar

In these cases extensions purpose and on similar terms. are on a more modest scale and the amount required is $200,000 in each case.

It

Li. Owing to the satisfactory surplus, sum of $1,000,000 required for these loans can be found without difficulty and I propose to authorise their issue. is not clear whether reference to you is necessary as

the terms of your despatch No. 302 of

(25) on 54126/57/48 under september 1948 capital expenditure of up to

$1,000,000 may be incurred without prior approval and reference to the terms of issue of loan presumably refers to those floated by the Government.

5. If your concurrence is required I should be grateful for an early reply in order to charge the amount to expenditure in the 1949-50 account.

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DEFEROE & GENERAL 7 MAR 1950

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