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At present, it is practically impossible for any School to raise more than a minimum of its expenditure with the exception of work in the I.B., school, where education is given in the Chinese language and no fees are charged.

The reason for this anomalous state of things is, that, when the grant was first started, the managers of these vernacular schools were very much afraid to place their school under the present grant-in-aid scheme, and that for this reason the standards in this class of school were fixed rather high and the standards of the examination made easy, in order to encourage those managers to give the scheme a fair trial.

The managers of these schools have now learnt to recognise fully the merits of the grant-in-aid scheme, and amongst their masters a tendency has manifested itself which abuses the liberality of the Government in this respect, there is not only a desire to maintain any higher rate of grants originally...

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