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in 1946 to over 13,700 of which 8,000 were girls. Since these schools are closely linked with the Church of England, or with particular missions and religious Orders, a strong tradition of Christian service exists in all of them.

There are 291 schools subsidized by the Government. Most of them are situated in the rural areas, where only 38 out of a total of 239 non-Government schools can afford to keep going without a subsidy. The large majority of these schools provide primary education for boys and girls and use Chinese as the medium of instruction. The schools are administered under the Subsidy Code, a recent revision of which improved teachers' salaries by 400%, the salaries being now two-thirds of those paid in Government and grant schools. Were it not for the subsidies many of these schools would be compelled either to charge higher school fees, or to pay inadequate The number of salaries with consequent lowering of standards. schools receiving subsidies has increased from 259 in 1948 to 291 this year. Each subsidy is at least half the difference between the school's expenditure and income, and usually a good deal more, sufficient to cover the whole financial deficit. The fact that the amount spent annually on subsidies is rising is an indication that schools welcome this form of assistance in spite of the greater measure of control it involves.

It is the Government's hope that these rural schools when equipped with radio and cinema will become centres of community life, a hope which may well be realized in view of the practical assistance and financial support given by village elders in the expansion of rural schooling. During the year new primary schools were opened at Lam Tsuen and Shuen Wai on the mainland, and on Lamma Island, all built by the private subscriptions of villagers in collaboration with the Government on a dollar for dollar basis. A new middle school founded on the same basis was opened during the year at Yuen Long; the elders and people of this township subscribed $100,000 toward the cost of the project.

Frivate schools, of which there are 560 in the urban areas and 38 in the rural districts, comprise 62% of the schools in the Colony 105 new and provide education for 67% of the school population. private schools were opened during the year, and since 1949 the number of pupils in private schools has risen from 93,000 to 108,800. The majority of these schools give only primary education in the vernacular, but there are 60 with middle school classes and 4 Anglo- Chinese schools. The vernacular schools vary considerably in size and efficiency. As a result of a reorganization of the Education Department's inspectorate, private schools were visited more fre- quently than had formerly been possible, and their income and expenditure accounts examined before monthly fees were agreed

upon.

The Education Department has increased the number of schools and pupils directly under its charge to 29 schools with over 9,600 pupils. The rehabilitation of King's College was completed during the year, and in September the new premises of Queen's College were opened in Causeway Bay.

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