ENG-1953 — Page 261

HONG KONG ANNUAL REPORT, 1953

In 1899, the area of the Colony was increased by the leasing from China of the New Territories and surrounding islands, and here again the policy was

again the policy was to bring orderly administration; for example, detailed land surveys were made in an attempt to ascertain ownership of land, with the minimum of interference with local customs. The pre-war years were remarkable for two great advances in education. In 1903, a new education code was drawn up, abolishing the system of basing the payment of grants to the voluntary schools on annual examinations, and substituting annual inspections as the basis. Payment by results had been abolished in England in 1890, and the Colony therefore was coming into line with developments at home. The other great advance was the founding of Hong Kong University, following discussions held by Sir Frederick Lugard with prominent local inhabitants soon after his arrival.

In 1908, H. N. Mody offered to bear the cost of the building, and a committee was formed to organize a public subscription. The foundation stone of the new building was laid in 1910, and the University opened in 1912. Henceforward the Hong Kong student was to be able to receive his profes- sional training and higher education in the Colony.

The last period, since the war of 1914-18, is yet difficult to evaluate. The Chinese scene has been completely changed by the Chinese Revolution, and the coming of the Nationalist Government, and later by the Japanese War against China and the war in the Pacific in 1941, and even more recently by the conclusion of the civil war and the establishment of a Communist Government in Peking.

After Japan invaded China in 1937, the Colony became a refuge for many Chinese and the population grew to over one and a half million. Until the fall of Canton at the end of 1938 valuable supplies were able to reach China through Hong Kong. With the outbreak of war in Europe, in

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