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We think that the ranks of the Inspectors should include Chinese representatives as well as British, women as well as men, and voluntary workers as well as Government servants. We do not propose to draw up the details of this organisation, as we are not sufficiently well in- formed of the work of the various Government Departments, and suggest therefore, that this is a matter with which the Government is more fitted to deal.

7. We feel that an explanation is needed of the serious responsibility that we have taken upon ourselves in recommending for children, a scale of hours of labour considerably in excess of that of male adult workers in Europe. Our proposals are indeed a compromise between the present "laissez-faire" attitude, and the more drastic method of removing children immediately from the factories. Of these two extremes the former is unthinkable, and we are not prepared to recommend the latter without also recommending some extensive scheme of social reform. As the data necessary for such a scheme could only be obtained after a searching enquiry into industrial conditions as a whole and into the financial resources of the Colony, a more moderate proposal of regulation appears to be preferable as a temporary measure. It will be pointed out that although the proposals reduce the working hours of children by periods varying from 25% to 40% on the old levels, yet as children are paid by piece rates they will suffer a corresponding reduction in wages. It will also be stated that the children them-✔ selves like the work, and that to reduce their hours of labour will cause unnecessary hardship in families dependent on their earnings. All these arguments can be paralleled from the history of the Factory Acts controversy in England in the forties of last century, and the reply is that the question is essentially moral and not only economic. A child is not a correct judge of its own welfare.

8. The feasibility of compulsory education has been examined, but owing to the difference of opinion on the question it has not been found possible to come to any unanimous conclusion. A memorandum on compulsory education was submitted by the Rev. H. R. Wells and at a meeting held on May 23rd the Director of Education stated the difficulties of carrying out these suggestions- such as those of providing accommodation, of registering children, and of arranging for the staffing and inspection of the schools. These difficulties are real, but at the same time the opinion may be hazarded that they are inherent in every scheme of compulsory education, and that as they have been overcome in other countries, they could, if the community had the will to do so, be overcome in Hongkong. Mr. Wells' memorandum and the statement of the Director of Education are printed in Appendix 2.

We do not agree with the frequently expressed opinion that an extension of educational facilities in Hongkong would be followed by a rush of people from the interior to take advantage of them. It is a common experience of countries that have adopted compulsory education that opposition may be expected from those for whose benefit the scheme is intended. There is no reason to suppose that the experience of Hongkong would be different, and on this ground the tendency would rather be towards an exodus of present inhabitants than to an influx of newcomers, and it would have the effect of stopping the immigration of child labourers which is very large.

One of the Commissioners Mr. Chow Shou Son however, does not share this view, as evidenced by the attached extracts from a Memorandum by him which forms Appendix 4.

In view of the fact that many children must earn their living by manual labour, it is suggested that steps be taken to provide an education for them suited to their special needs.

Such an education would least a "primary education." and the bearing of intellect on

comprise training in manual work in addition to at The dignity of manual labour should be emphasized manual work explained.