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"free education at the hands of the Government, remain to all appearances desti- "tute of any conception of the obligations they are under. Geography is taught (very badly) in the Fourth Standard, where many of the scholars were at the last "examination ignorant that Hongkong was a British Colony: a number hazarded "the opinion that it belonged to Russia. Most of them, as well as some of the "teachers, seemed unaware that the Chinese expression meaning "red-headed man" "as applied to Englishmen is resented by them."

That description was at the time by no means too strongly expressed. To-day, it would be ridiculously untrue. as must be clear from the reports upon the individual schools in Appendix D. Adhering to my opinion that the number of Vernacular Schools should not be largely increased, so long as the demand for English education remains unsatisfied, I am bound to say that the masters and mistresses of the Vernacular Schools, under the active advice of some of the managers, have in a very short time effected changes, which are as satisfac- tory as they are striking.

What has been accomplished could not have been accomplished had the awakening of teachers been upon the hands of the managers and the Department alone. But fortunately a spirit of enlightenment is rapidly affecting Chinese education. Translations of English and Japanese books are being made every day at Shanghai and elsewhere; the number of progressive Chinese is daily increasing. Among the Vernacular Schools of the Colony under purely native management are some, where the curriculum and methods of teaching are very creditable; better indeed than in the great majority of our Lower Grade Schools of a few years ago. The change in our methods has taken place in time, though only just in time, and it cannot now be said that we need learn from China how to conduct schools on Western methods.

GENERAL.

Needlework. This subject is still examined on the old system in all Grant Schools. At an annual examination a piece of hemining is done by every girl, and the results having been examined by a competent person, the schools are thereupon graded accordingly. To anyone acquainted with the creations of such schools as the French or Italian Convents the test must seem absolutely fantastic, and the verdict can have little significance; but a real inspection and serious criticism in the case of the majority of the smaller schools is a matter of some urgency. Needlework is not a compulsory subject in all the girls' schools, as it certainly ought to be.

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Sanitation. The very moderate requirements of the Code in the matter of floor space have in several instances not been complied with. I think it would be fair and advisable in future years to deduct from the average attendance of each month the number by which it exceeded the maximum sanctioned for the School.

A Reader on hygiene was published by the Government towards the close of the year.

It is to be made a compulsory study in all Government and Grant Schools in Standards III and above.

Honourable F. H. MAY, C.M.G.,

Colonial Secretary.

I have, &c.,

EDWARD A. IRVING,

Inspector of Schools.