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the excessive numbers in the lower classes. ing the lower grade or primary vernacular In pursuance of this policy the estimates schools in the Colony. So far as these are for the present year provided for the conducted by missions it appeared to me addition of a translation master and five that there was much room for improvement visiting vernacular masters at Queen's and economy. The schools were mostly College whose duties should consist in very small and badly located, several being giving better instruction in the Chinese close together, while other large districts language, while the estimates for the next lacked any school at all. They were conse- year provide for two more English masters quently unduly expensive. It seemed to at this school, and one more assistant me, moreover, that the Government grants- mistress at the Belilios Girls' School.

in-aid were much too high in proportion to Turning now from Secondary to Primary the class of education given, for it was education, viz., from upper to lower grade admitted that a superior education could” schools, the committee of 1910 recommended be obtained in the vernacular side of Belilios that Government should open three primary Girls' School at a cost of $5.24 per pupil, "English" schools to accommodate the while the cost to Government per unit at children who would be excluded from the the grant schools was over $7. In these classes of the secondary schools by the views the Director of Education and the operation of the reforms I have described. Colonial Secretary concurred, and I did not These, as you are aware, were provided for find that they were seriously disputed by the first tive in this year's estimates, and the missions concerned. I propose there- were opened in September, 1910. They fore to reduce the grant under Article 39A were located at Praya East, Taipingshan, of the Code from S6, $7 and $9 to $3, $4 and Mongkok. The last two of these have and $5, viz., from a total of $19,979 to proved not to be required, and they were $15,866, and to abolish grants-in-aid of rent, therefore closed last January. Their average The missions accepted these reductions, but attendance in that month was only 9.78 and decided to continue all their schools. This 9.2, respectively, The school at Praya sets free a sum of $4.113. East has proved a success, and an extra master is provided for it next year. These are all schools in which instruction is given in the English language. I tara now to Primary Vernacular Schools, eg., those in which Chinese is the sole medium of instruction and English is not as a rule taught. The schools in the New Territory are, I am glad to say, doing well and increasing their attendance. Extra masters are provided at Taipo, Pingshan and Cheungcbow, I hope to see the number of these rural English schools increase, but the villages are for the most part small, and primary vernacular education is carried on by private enterprise.

During the past year su important step which has been under consideration for uearly a year has been taken in regard to the primary vernacular education of the children of the Colony, and I take this opportunity of explaining the matter. When the discussions relative to the reforms in secondary education had been disposed of by the adoption of the recommendation of the committee to which I referred, I discussed with the heads of the missions concerned and with a number of influential Chinese gentlemen a scheme for co-ordinat-

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Apart, however, from these mission-con- ducted schools which received a grant from Gorerament, there are an immense number of private vernacular primary schools muu as a speculation by Chinese teachers of which the Government has little or knowledge whatever. Many others supported by Chinese Societies, such as the Ellis Kadoorie Schools Committee, the Con- fucian Society, and others. I have long thought that this was a sphere in which the leading Chinese in this Colony would undoubtedly interest themselves, if they were invited to do so by the Government and assured of Government co-operation. I consulted therefore the Chinese members of the Council and many of the leading Chinese geutleinen with the Registrar- General and the Director of Education, and eventually a Chinese Board of Primary Vernacular Education was appointed by an Order-in-Council which appeared in the Gazetle of September 15th, 1911. The object of the Order is to constitute a Board somewhat similar to the Directorate of the Tung Wa, but which includes the Registrar- General and the Director of Education. It is my hope that the Chinese will take this matter of primary vernacular education into

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their own hands, as a new form of civic usefulness, assured of Government co-opera- tion and financial assistance, but unhamper. ed by red tape and unnecessary control or interference. When they have made their plans and formulated a scheme they can ask for whatever statutory powers they find necessary, and this Council will have an opportunity of fully debating the subject, It is proposed to hand over to them the $4,100 saved on the mission-conducted schools of the same class.

result.

I have great hopes of this scheme if it is allowed to develop on natural lines of evolution in its own way. I hope that in the future every primary school in the Colony in which instruction is imparted in the Chinese language will be under the cognizance of this Board, other than those conducted by Government itself, or by missions under a Government grant, I trust that a great improvement in methods of education by the employment of trained teachers and better supervision will be the The principle involved is the on- couragement of Chinese initiative with Government co-operation, and the promo- tion of a better and more widely-extended system of primary education in the Chinese language. The generosity of the Chinese in matters of education, when under their on control, will no doubt provide funds, but I do not disguise the fact that in future years the grant provided by Governmout will probably need to be largely increased.

In regard to education generally, we must remember that data applicable to Eugland and indeed to most other Crown colonies are not applicable here, where our school population usists very largely of aliens from China and is transitory. Com. pulsory education for all children is hardly, think you will agree, a feasible proposal at the present time. I do not share the view of the distinguished getlemen who has recently contributed a series of articles to the Press, that existing charitable agencies are hampered by want of legisla- tion, and I doubt whether a system of registration and inspection" of these in- stitutions would not be more likely to stifle than to encourage them. In the last com- pleted year of account, 1910, we spent 2.34 per cent. of our revenue on education, and in the seven years prior to 1907 we spent only 1.69, an increase of about 38 per cent. I believe that this increased expenditure

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has been justified by a very real progress and extended and improved education. This extension and improvement will need to be steadly continued from year, for though, as I have told you, we have in- creased our expenditure on education by as much as 38 per cent. since I have been here, it is still but a very small proportion of our revenue, and contrasts, I think, unfavour- ably with other colonies. In the Straits Settlements the proportion appears to be approximately double.

The reformis which have been inaugurat- ed are the outcome, not of any single opinion, but of continued consultation with those who are best informed, and I trust that the settled lines of progress will not be nullified by putting the system into the melting pot every few years, or by an undue thirst for legislation. It my be that the time has come to add an Educa- tional Board to the innumerable Boards and Committees which exist in the Colony, and if there should appear to be any such desire the Government would gladly comply with it, But, for my own part, I think it will be wise to await the development of the Chinese Primary Schools Board, and not to over-weight the education of the Colony by too great a multiplication of Boards and Advisors, seeing that already no important step is taken by Government without consulting those best qualified to advise.

The Technical Institute under Mr. Ralpbs has thoroughly justified the hopes of my predecessor, when he first established it under the name of " Evening Continuation Clas es." Its third year pupils are now gaining certificates which denote a high level of attainment in the various subjects for which they are grated. The decrease of enst (2,310) is fine merely to the fact that in the past two years the votes have been over-estimated.

Volunteers

There is a decrease under the cost of the Volunteers, because I am sorry to say that we are losing the services of Captain Thompson next year, and the new staff officer will be of junior rauk.

Public Works Department

In the Public Works Department a re- organisation of the staff of engineers junior

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