There is only one purely primary Vernacular school provided by Government, viz. the Un Long School in the New Territories, which was formerly an English school, but now only teaches English as a second language, the medium of instruction in other subjects being Chinese.

There were 1,060 registered Private Vernacular (Chinese) schools, of which 273 received subsidies from Government. The subsidy in each case is meant to cover approximately half the net expenditure on salaries and rent, after deducting any income from fees. Some of the schools have "middle" divisions above the "primary" division but most are purely primary. Some of them are housed in proper school buildings, but the majority rent rooms or flats in shop or tenement buildings. They vary from one-teacher schools run by private individuals to larger institutions controlled by local guilds, societies, or missions. Some of these schools charge no fees, in the others the fees range from $30 to $6.00 per annum. The qualifications of the teachers also vary considerably; some are untrained, some have teachers' certificates from Normal Schools in China, and some certificates from the Hong Kong Normal School or Evening Institute. The curriculum of the schools includes the usual subjects such as Reading, Writing, Arithmetic, and Geography—all in Chinese—and a number include some form of Physical Training and Singing. An Annual Physical Training competition for the Director of Education's banner is held. Twenty-six schools took part in the 1938 competition and the standard shown was much higher than in previous years.

Pupils who intend to proceed to an English school usually complete at least four years' schooling in a Chinese school first. Thirty Government Free Scholarships tenable at an English school for five years are awarded annually to selected candidates from Vernacular schools.

(b) English Schools. Government provides seven English schools, known as District Schools, which may be considered to be primary schools. They are Gap Road, Cheung Chau, and Tai Po Schools, which provide a three-year course, after which pupils may proceed to one of the other English schools having higher classes; Ellis Kadoorie School, Wantsai School, Yaumati School and Ellis Kadoorie Indian School, which provide a five-year course. Six of the above schools (i.e., all except the Ellis Kadoorie Indian School) are for Chinese pupils and admission is given only to those who have reached a certain standard in Chinese, which usually means that they have studied for at least four years in a Vernacular school, and then enter the English school, at the age of about twelve.

After five years in an English school these pupils sit for a common Class 4 examination and, after passing that, may proceed to Queen's College or King's College. These two Government Schools comprise both primary and secondary classes, and the boys from their primary classes sit for the common Class 4 examination. This examination is taken also by boys from the Indian School. A maximum of thirty-five Government Free Scholarships tenable for two years at Queen's College and King's College are awarded to pupils from these District Schools and the primary classes of Queen's College and King's College on the results of the Class 4 examination.

Besides the above Government schools there are seven Grant-in-Aid English Boys' schools. These have both primary and secondary classes, providing in all an eight-year course. With one exception they are all managed by missions. The pupils include Chinese, Portuguese, and Eurasian boys.

In all Government and Grant schools Chinese pupils continue the study of their own language pari-passu with the learning of English and of other subjects through the medium of English. Physical Training is included in the curriculum, and efforts are being made to extend the teaching of music, arts, and crafts.

There were also 133 private unaided English primary schools registered at the end of the year, of which 124, with a maximum enrolment of 4,749, were boys' schools. In addition, 46 boys attended at three mixed unaided primary schools.

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