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14. The Government of Hongkong may reasonably be expected to provide or assist in providing an education for four classes of children:-

First. Children of British parentage resident in the Colony. Second. Children of Chinese parentage resident in the Colony. Third. Children of Portuguese extraction resident in the Colony. Fourth.-Children of mixed European and Chinese parentage (Eura-

sians) resident in the Colony.

The case of Parsees and other Indian British subjects, of whom there are a considerable number in the Colony, has been disregarded. Probably some settle- ment of their case will have to be made before long, such as the establishment of a small school for their use. No definite recommendations are made on this point, which does not appear to be of instant importance.

Among the classes and races who can hardly expect the Hongkong Govern- ment to defray the cost of their English studies are French and American subjects from Annam and the Philippines.

The Portuguese from Macao may seem to present a parallel case, but a distinction can be drawn. It is the duty of the Government not to abandon a large section of its subjects, while on the other hand it is quite impossible to distinguish between the Portuguese who are domiciled in Hongkong and Macao.

15. Further, in Imperial interests it is desirable to offer instruction in the English Language and Western Knowledge to all young Chinese who are willing to study them, even though they are not residents of the Colony: provided that the instruction can be furnished at a reasonable cost.

The majority of the 900 boys at Queen's College belong to this class. After having studied Chinese in their own schools on the mainland, they are attracted to the Colony by the facilities it gives for the study of English. No distinction is made between them and the sons of Chinese residents of Hongkong, and it is recom- mended that this policy remain unaltered. The additional expense to the Colony is trifling, and the gain to British interests in China by the spread of English and of friendly sentiments towards our Empire should well repay the cost.

CHILDREN OF BRITISH PARENTAGE.

16. It is essential that the children of British parentage be educated by themselves, and not side by side with children of other nationalities or races.

This opinion is mainly based on two reasons: first, because the education of the British children is retarded by the inevitably slower progress of their class- mates, to whom English is a foreign language; secondly, because they have to consort during their most impressionable years with the offspring of alien beliefs and other ethical standards.

17.. There is no public school in the Colony reserved for the children of Eritish parentage alone. It is recommended that steps be taken to remedy this state of affairs.

The principle here involved has already been approved. (See Appendix A.}

CHILDREN OF CHINESE PARENTAGE.

18. The Chinese who attend schools under Government control fall into two classes, namely, those who attend the Anglo-Chinese Schools, and those who attend the Vernacular Schools.

It has already been pointed out (section 9) that the same children seldom attend first one class of these schools and then the other. The gratuitous education given in the Vernacular Schools makes them attractive chiefly to the