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          Teaching Pictures:  The  South East Asia Curriculum,  Chinese Christian
          Literature Council and AVEC have been considering how we could produce
          Teaching Pictures for the Sunday Schools.  CCLC would handle distribution
          and AVEC and the  Curriculum committee  would do selection and production
          supervision.  This  would need a capital grant of US$2,000 to get started
          for a set  of 12 teaching pictures with a run of two thousand.


               These are all possibilities that AVEC could developed.  However we
          need the great support from our local churches in order to make the
          best and widest use of the equipment available.

               Thanks of the Chairman,  members of the Executive Committee and
          various Sub-committees and especially the entire staff for their
          entiring and loyal service to AVEC.  We look forward to continue on
          service to the local churches,  schools as well as the whole community.


     C.  DIVISION FOR SOCIAL SERVICE

          Committee for a United Christian Hospital

               A number of important  developments have occurred with the United
          Christian Hospital which have enabled it to now move forward with
          considerable momentum.  On November 30th the German Central Agency
          notified us that a grant  of DM 3 million  (HK$4.56 million)  for the
          project has been approved,  which is a major capital funds achievement.
          We have learned that the Women's Christian Medical College Board
          (formerly Shanghai Women's Christian Medical College)  is  giving
          US$100,000  (HK$606,000)  toward the building fund designated for the
          nurses'  training unit.

              In December the Hospital Committee reviewed the capital funds
          status and decided to proceed on the basis of the hospital having
          approximately 350 beds and that the total capital expenditure should
          aim at HK$20 million.  This means that together with the grants
          assured from missionary societies in America,  Canada,  and United
          Kingdom,  over 50% of the required capital funds are assured.  The
          balance of capital needs must  come from local sources.

               The  Committee also reviewed the basic concept of the hospital.
          With a community hospital concept,  the hospital could better integrate
          itself within a specific  community and,  in close coordination with
          other available resources,  become deeply involved in raising the level
          of total health for the community.           Our concept of total health is
          that it must be more than simply the absence,  cure,  or prevention of
          disease,  but should be something positive which enables individuals
          within their environment to progress to greatest maturity.  If this
          concept  of healing is to be approached it  will obviously require many
          more hands  than could possibly be employed by the hospital.  A dynamic
          relationship between members of local congregations and the health
          program is essential.


               The Committee compared the plan to build the hospital in North
          Kowloon with the possibility of building in Kwun Tong instead.  Kwun
          Tong has a population of approximately 400,000 persons now and is growing
          at a rate of 75,000 per year;  it has no acute general hospital facility,
          nor casualty service in spite of being highly industrialized.  After
          carefully considering all the factors,  and upon hearing the recommendation
          from the Government's Medical Development Plan Standing Committee,  the
          Committee decided to build the hospital in Kwun Tong.


               The  Committee studied various sites in Kwun Tong in order to find
          the one  which best fits our requirements.  A site of 5.5 acres has
          been selected on Sau Mau Ping Road directly west of the new Sau Mau Ping
          Resettlement Estate.  The site is near the heart of Kwun Tong and allows
          access by foot to the hospital by people  living in several resettlement
          estates,  and several bus routes pass the site.  The Government is now
          in the process of reserving and making a free grant of the site for
          this hospital.  Our Architect,  the firm of W.  Szeto & Partners,  is
          progressing rapidly in development of the plans.
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