435

with ill-favour by the public and as the opinion was expressed in well-informed quarters that a longer period of rotation was preferable, it was decided to suspend felling operations while the advice of the Indian Government was obtained. A scheme of issuing Forestry Licences in the New Territories was initiated in the hope of inducing the Chinese to adopt more economical methods in dealing with the considerable plantations of pine trees formed before the cession of the Terri- tories, and with the object of tempting them to take up fresh areas of waste lands for further planting. The small area available for rice cultivation and the unfer- tility of the soil combine to prevent agriculture from becoming a prominent indus- try in the Colony. The low-lying land in the New Territories is probably utilized to nearly the fullest extent possible, and it is therefore from the profitable cultiva- tion of the steep hill slopes that any increase in the productiveness of the Territo- ries may be derived. In this connection the cultivation of pine apple, and experiments that are being made with sisal hemp are of much interest.

(e.) LAND GRANTS AND GENERAL VALUE OF LAND.

The amount received from sales of Crown land was over $486,000, being some $24,000 less than the receipts for the previous year.

Building land in the urban portion of the Colony and in the Peak District is limited in extent and steadily increasing in value. The natural consequence is that house-rents, especially on the higher levels, have advanced to an extent probably unknown in other British Colonies.

III.

LEGISLATION.

Sixteen Ordinances were passed during 1904, of which six were measures for the amendment of existing Ordinances. The most important measure was the Sugar Convention Ordinance (No. 14 of 1904) giving effect to Article VIII of the Brussels Sugar Convention, 1902. By the Hill District Reservation Ordinance (No 4) a residential area is preserved at the leak.

The Opium Monopoly was further protected by an Ordinance (No. 10) controlling the importa- tion and sale of compounds of opium. By the Pilots Ordinance (No. 3) provision was made for the examination and licensing of Pilots, who must be British sub- jects.

IV.-EDUCATION.

The number of Government and Grant Schools including Queen's College, is 81, of which 23 are Upper Grade Schools in which at least part of the staff is European, and 58 are Lower Grade Schools, under purely native management. Broadly speaking the Upper Grade Schools teach in English, and the Lower Grade Schools teach in the Vernacular.

The total number of Scholars in average attendance at Government and Grant Schools was 4,970. Of these, 1,665 were in Government and 3,305 in Grant Schools; 2,906 Scholars received instruction in English, and 2,064 in the Vernacular. The proportion of boys to girls was 3,236 to 1,734, or a little less than two to one.

A small Anglo-Chinese School was opened at Un Long in the New Territory early in 1904; and arrangements were made to open a new School for children of British parentage at Caroline Hill, East Point. The Kowloon School for children of similar parentage, opened in 1902, has had an average attendance of 54.8 as against 46.4 in 1903.

The new Code for Grant Schools has been in force during the year, and has worked very satisfactorily.

It was decided to introduce the study of Hygiene into all Government and Grant Schools and a suitable text book was prepared.

The Revenue derived from School Fees was $36,251.50. The Expenditure was $151,589, being 2.32 % of the total expenditure of the Colony.

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