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school-rooms provided free of rent in St. Paul's College; but it failed. The chief reasons of its failure were as follows:-First, The Government Grant-in- aid being calculated for schools with large numbers of Chinese pupils and with Chinese teachers, was wholly inadequate to help a school with a smaller number of pupils and with European teachers: Secondly, The fees that could be charged were necessarily low. For these two reasons it was necessary to raise a large annual subscription in the Colony for the support of the school. Then, in the third place, it was a matter of very great difficulty for the managers, who of course had not the control of a large staff of teachers, as the Government has, to retain a teacher permanently at the school; the attractions of Government posts, and other causes, leading to frequent vacancies in the post of teacher. The same cases would operate now on any private endeavour. They simply confirm the fact, now well recognised at home, that for the effective carrying on of education the State must undertake the work. The Public School in Shanghai, with 230 pupils, of whom 80 per cent. are European, the rest being Eurasian and quarter- Eurasian, could not be carried on without an Annual Grant from the Municipal Government of Tls. 4,000 with certain special grants in addition. In Hongkong, as in Shanghai, low fees could be charged; but experience has proved that Mr. STEWART'S anticipation that such a school might be nearly supported by the fees was too sanguine; and in these days it is useless to argue that necessary education should be. provided by charitable contributions and not by the rates.

4. It has been urged against the proposal to found a school for Europeans only, at the cost of the rate-payers, that it would be "Class Legislation.'

As a matter of fact the present system is one "Class Legislation" in favour of the Chinese as against the Europeans. All the schools in Class I and Class II and almost all the schools in Class III are available for the Chinese only. The Government has just voted $9,000 to build a school in Yaumati, and that in spite of the fact that others wished to establish such a school, asking for nothing more than a Government Grant-in-aid. It is idle to say that that school and scores of other schools maintained or supported by Government are available for Chinese and Europeans alike. Even the schools in which English is taught, where they have Chinese teachers, and instruction carried on in the Chinese language, are no more available for Europeans for the purpose of education, than the sea is available for them as a place of residence. It is true that a large proportion of the rates is paid by the Chinese. It is equally true that no inconsiderable proportion is paid by Europeans. The Chinese are bountifully provided by the Government with an education such as they desire. The Europeans are not. We do not grudge the Chinese the advantages given to them: we only ask for similar advantages for Europeans. This Colony is a composite one, Both Europeans and Chinese are absolutely essential for its very existence. By all means let the Chinese have the advantage of a good education; but we cannot believe that it is wisdom or justice on the part of the Government to make it impossible for Europeans of small means to remain in the Colony unless they are prepared to forego a proper education for their children.

5. It does not fall within our province to enter into details as regards the character and management of such a school as is suggested; but there are certain points of importance, arising from the peculiar circumstances of Hong- kong to which we think it well to call your Excellency's attention."

(a.) In view of the fact that there are many Europeans in Hongkong who require something more than a Primary Education for their children, we think that a school for Europeans ought to combine both Primary and Secondary Education. The scale of fees might easily be adjusted in such a way, that those who desired a higher

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