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26. It is further recommended that inducements be held out to children to prolong their studies in the Vernacular Schools, and the following expedients are suggested

(a.) To permit the teaching of English as a special subject in the higher

Standards.

(b.) To offer scholarships from the higher Standards of the Vernacular

Schools into the Anglo-Chinese Schools.

The principle that underlies these recommendations is to use the eagerness of the Chinese to learn English, as an inducement to them to submit themselves longer to educational influences. The instruction in English given to the highest Standards of the Vernacular Schools will, it is hoped, benefit children who cannot afford to continue their education in the Anglo-Chinese Schools.

CHILDREN OF PORTUGUESE EXTRACTION.

27. There are two classes of schools in the Colony, both under Roman Catholic management, which provide an education mainly intended for the Portuguese, namely, (a.) those in which English, and (6.) those in which Portuguese is the medium of instruction.

The first class includes St. Joseph's, where Portuguese scholars predominate, though there is a tendency to admit too many Chinese: the latter not only fail to get the education best suited to their needs (as described above) but also keep back their European class-mates, by reason of the greater difficulties which a Euro- pean language and European ideas present to them. Neither should Annamese and Filipinos be allowed to predominate in a school primarily intended for the children of Hongkong.

PORTUGUESE VERNACULAR SCHOOLS.

28. It is unnecessary for the Government to foster the study of the Portu- guese language, and it is recommended that the support given to these schools be withdrawn.

There are four of these schools. At the last examination 75 children (mostly girls) were presented, nearly all of whom were in the lower Standards. Many scholars make use of these schools merely as preparatory schools, completing their education in the English Schools, where they are hampered by their ignorance of English and forget, for want of practice, the Portuguese they have acquired.

CHILDREN OF MIXED PARENTAGE (EURASIANS).

29. The existing English and Anglo-Chinese Schools are sufficient to meet the needs of Eurasians; who can as heretofore choose which class of school they prefer to attend.

Queen's College is open to all Eurasian boys, and will continue open to those who elect to be educated as Chinese. The Diocesan School and Orphanage is largely attended by Eurasians: so. also is St. Joseph's.. The Belilios Public School and the Diocesan School for Girls were founded for the special benefit of Eurasian girls.

FEMALE EDUCATION.

30. The education of girls in the Colony should follow the lines indicated for boys as a general rule.

GIRLS OF BRITISH PARENTAGE.

31. The education of girls of British parentage is as defective as their brothers' and for the same reasons.