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inconvenience to the community. There have, inevitably perhaps, been repercussions in labour circles from events in China, one of which, the effect on the local cost of living, is the ostensible cause of the recent widespread demands by labour for adjustment of wages and allowances. These demands, it is confidently anticipated, will be settled not on an emotional but on a factual basis, since the principles of negotiation and arbitration are apparently making headway against direct action by strikes. The arbitration provisions of the Trade Unions and Trade Disputes Ordinance have been invoked in one case, and in spite of earlier hesitations there now appears to be a more general willingness to consider this method of procedure.
The high local cost of living continues to cause Govern- ment considerable anxiety. The publication in January last of the Government Statistician's "Report on Post-War Movements in the Cost of Living in Hong Kong" has shown that the Retail Price Index Figure, calculated on the basis of 100 for March, 1947, had fallen to 93 in March, 1949, but had risen to 112 in December, 1949. It is common knowledge that the high price of rice affects the whole structure of the community, and I wish that I were in a position to promise some relief in that direction. Unfortunately, political and economic conditions in the rice- producing countries of South East Asia seem to preclude much hope of more and cheaper rice in the near future. Events in the neighbouring province of Kwangtung have from time to time affected our supplies of vegetables and livestock, but I am glad to say that in the past year the local vegetable producers have broken all records and that the Colony is now more self supporting in this respect. The high retail price of local fresh fish is another problem which Government is tackling in the interests of the consumer.
In the field of education the number of pupils in Govern- ment schools has more than doubled in the last two years, with over 2,000 additional pupils since the previous year. While the main increase has been on the vernacular side, there is a growing demand for English. The number of children attending schools of all kinds, i.e. government schools, grant schools, subsidized schools and private schools has also increased. There are now some 146,000 children attending school, as compared with 120,000 a year ago and 116,000 in 1941. Although the increase is not unsatisfactory, and although also few children of bona fide Hong Kong residents who want education are not receiving it, we must not be complacent. There is still much to be done, if we are to eradicate the necessary but educationally unsound system of two-sessional schools.
The building of a new Queen's College, which I know will be very much welcomed, will provide accommodation for 1,000 secondary pupils. It is anticipated that this new building will be ready by September of this year. The former King's College is at present being rehabilitated, in order to accommodate a new primary school for 1,000 pupils in two sessions of 500 each. This will be known as King's College Primary School. Before
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the war Queen's and King's each provided education, both at primary and at secondary level. Of the 1,800 pupils attending the two Colleges less than half were in secondary classes. The present policy is to separate primary and secondary education. Consequently, for the time being, the new Queen's College will be able to accommodate all those students from Government primary schools, who are capable of continuing their education. The increasing demand for secondary education will probably make it necessary, at some future date, to erect a new King's College to cater for Kowloon pupils.
In addition to the two schools I have mentioned, some fifteen others are being built or rebuilt by Government or will be in the coming financial year.
The Rural Training College, opened in 1946, is beginning to make itself felt in the New Territories. It aims at being able to train all the teachers for rural schools in ten years' time. A notable feature of education in the New Territories is the practical interest taken by the village communities, which takes the form of sharing with Government the financial cost of erecting school buildings.
The enormous demand for education in Hong Kong goes beyond the desire of parents to have their children able to attend school. They see to it that the children do attend, as is shown by the fact that out of 146,000 children enrolled in schools an average of 142,000 attended daily, or over 97%. This is the highest percentage attendance recorded in any colony. There is perhaps a tendency to aim at education for white collar jobs, and to neglect the training of skilled foremen and artisans for the many and important industrial enterprises in the Colony. This is a matter which will receive the attention of Government in future, and it is hoped that as a beginning the Junior Technical School may be restored before long.
Government's total expenditure on education in 1949/50 including capital expenditure, was over $20 millions,- -a con- siderable increase over the previous year, and represented nearly 12% of total Government expenditure.
On the medical side perhaps the main event of the year has been the opening of the Ruttonjee Sanitarium by the Anti- T.B. Association. It will be some time before we have got this disease under control, and, of course, it is made still more difficult by the influx of persons from China. All our problems would be very much simpler if we had a stable population. We are very overcrowded, and with conditions as they are in China to-day the position gets steadily worse as people with no claim on the Colony will come flocking in. This creates both health and fire hazards; also the problem of water supply during the winter months is a difficult one. Much as we dislike it, we may be driven to take measures to stop the influx, for we simply won't have room, and we cannot jeopardize the health and safety
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