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EDUCATION
Alternatively, a block grant may be made. Grants of up to 50 per cent may also be made to meet the cost of new building, equipment and major repairs. In addition to this aid, interest-free loans may be made for approved new building projects.
Subsidized Schools are mainly primary schools operating under the Subsidy Code. The subsidy, like that paid under the Grant Code, is a deficiency grant and enables schools to keep their fees low and to pay teachers the same salaries as Government and grant school teachers of the same grade. The schools are assisted when necessary by free grants of land and building subsidies, and are eligible for interest-free loans for new buildings if their sponsor- ing bodies are incorporated. Although an urban subsidized school is usually bigger than a rural one, more than half such primary schools are in the New Territories, serving small, scattered villages as well as the more thickly populated areas. When a rural school is needed (or an extension to an existing one) the villagers approach the district officer, who helps them to seek the Director of Educa- tion's approval for their plans. A building grant and recurrent subsidy are generally given. Usually capital grants are made up to a maximum of 50 per cent of the total cost of the school, but for many small village schools a larger percentage subsidy may be given. There are 151 subsidized schools in urban areas and 271 in the New Territories.
Private Schools range from kindergarten through primary and secondary to post-secondary. In most cases private technical and commercial schools aim at short, intensive courses. Fees are generally much higher than those in other schools. Two measures introduced in 1960 assist private, non-profit-making schools. The period of repayment of loans by schools of this kind was extended to 21 years, subject to interest being charged at 34 per cent per annum. Schools already in receipt of interest-free loans repayable over 11 years were given the choice of adopting these new terms for the outstanding balance of their loans. Direct Government assistance is also given by paying part of the salaries of qualified teachers in selected non-profit-making secondary schools. Students in such schools who have been selected for entry on the results of the secondary schools entrance examination have also been