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Though the decrease in numbers appears to have stopped, it has only done so owing to a new demand which the school is satisfying for the time being. In 1900 4% of the scholars were Indian boys under eleven years of age in the Preparatory School. In 1903 they had increased to over 9%. At least another 11 % are Eurasian or Asiatic boys other than Chinese. There appears to be need of a school for these boys; and I am glad to report that temporary arrangements have been made, through the liberality of a member of the Indian community, by which a Grant School will at once be opened for them.

As I pointed out last year, in the Chinese Division of the Belilios Public School there are 240 girls who are getting an education in their Written Language without any supervision whatever from the Mistresses of the English School. By drafting out the Indian boys it should now be possible to free one Mistress at least to look after them.

I examined the English School at the end of the year. The work was very well done in the Upper and Lower School, but it did not appear to me that enough work had been got through in the course of the year. The work of the school was however considerably disorganized by the temporary absence of the Second Mistress who had to fill a vacancy for some months at the Kowloon School.

In the Preparatory School there were (a very few) English speaking Infants `; many Indian boys who come knowing nothing; young Chinese boys; young Chinese girls; Chinese girls of 15 or 17 who having completed their Chinese education were beginning to study English; and Portuguese or other girls of about the same age also knowing no English. It is impossible to form satisfactory Classes out of such a medley. I can only hope that the steps I have taken will reduce the Preparatory School to a completer state of organization.

The Chinese girls have, under Miss BATEMAN, made nevertheless remarkable progress with their English. They write very well indeed; and the fact that they will at the end of a year's study speak out loud in Class to a stranger is proof to my mind of great pains spent in overcoming their almost invincible diffidence. They do not speak as well as boys in the District Schools who have been learning just as long. I have not yet had experience enough of the new system, to say whether this is inevitable or not.

THE DISTRICT SCHOOLS.

These schools were entirely re-organized at the beginning of the year. Special attention has been paid to the improvement of the Chinese Masters in the method of their teaching, especially in the method of teaching English.

Normal Class.

A Normal Class has already done much to improve their knowledge of the science of teaching. They have met every Saturday and have given lessons in turn to a Class, which lessons have been followed, after the dismissal of the Class. by discussions upon the matter and treatment, and have been subjected to criticism. The Chinese Masters have shown themselves willing and quick to learn: and this is the more satisfactory since, if a knowledge of English is to spread rapidly, we shall have to depend upon Chinese Masters for the instruction of the Lowest Standards.

Fees.

The fees paid by the scholars have gradually been raised, till now $2 a month is paid by new boys, and $1 a month by the scholars already in attendance. At Yaumati fees were charged from the middle of the year only. The total of fees collected was $1,507.50, compared with $152.50 in 1902, and nil in 1901.

Attendances.

The schools have been throughout the year about as full as the Staff would warrant. Attendances have as usual been extremely irregular. The average number in attendance at the three schools combined was 265 (Saiyingpun 95, Yanmati 74, Wantsai 96).

Books and Apparatus.

The schools were well equipped during the year with books and apparatus ordered from England: but as these did not arrive till the latter part of the year, and as some time was inevitably taken up with arranging the curriculum according- ly, the schools upon their reconstructed basis can hardly he said to have been working for more than six months.