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that the statutory power to close a school (as against suspending its activities for a period of time) should be transferred from the Director of Education to the Governor- in-Council.
4.
The Government announced in the press release ac- companying publication of the Report that the Committee's recommendations were generally acceptable and that measures would be taken to implement them, subject to any advice of the Board of Education that might be necessary and the voting of any additional funds by Finance Committee. Consultations are underway with the schools councils and major sponsoring bodies on the possibility of having teacher representatives on school management committees, a measure which we believe may help to improve channels of communication. A management review of the Education Department's Schools Division is also in hand. The review of the financial controls in the Code of Aid and their relationship with the Education Ordinance will require much thought and consultation. The proposal to amend the Education Ordinance to transfer the power to close a school from the Director of Education to the Governor-in-Council is also under consideration. In this connection, it should be noted that, while the closure of Precious Blood School had to be carried out by the Director of Education in accordance with powers conferred on him by the Education Ordinance, the decision was preceded by much discussion within the Government. Because of the need to act swiftly, it was not possible to consult the Executive Council in advance, but it was consulted at the first opportunity thereafter, when the Governor-in-Council endorsed the Director of Education's decision. However, the change recommended by the Committee may serve to avoid future misunderstanding over the authority for such a decision.
5.
Although the Government has accepted the Committee's recommendations and believes their implementation to be worthwhile, there is nonetheless some feeling within the Government that the Committee may have been mistaken in viewing the financial mis-management as the cause, rather than merely the occasion, for the unrest at the school.
6.
The Report received prominent coverage in the Press at the time of publication, though interest quickly waned, partly because of the time that has elapsed since the events took place. The feeling is widespread among the public that the Final Report represents the last word and that the dispute is over and done with. However, as the Committee's criticisms of the Education Department were reported more prominently than some of the other features of the Report, the Department's image has undoubtedly been tarnished by the affair. The image of the Roman Catholic Church as a school sponsor has also suffered.
7.
Present indications are that the dissident teachers and the students who followed them have settled into the new Ng Yuk School. The only current issue of controversy is the use of the misappropriated school funds. This money, apart from the sum due to the Government, passed to the authorities of St. Teresa's Secondary School,
CONFIDENTIAL
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