E.—l.

again for the greater part of the year. Of the new schools proposed last year Kaingahoa, near Bussell, and Oruanui and Waitahanui, in the Taupo district, are now approaching completion. The Inspector's report contains a list of the applications for new schools that are still under consideration. At Kawhia, where European settlement has recently increased with great rapidity, the Department has had once more to consider the problem of providing for the education of both races in the same locality. The maintenance of the Native school, otherwise desirable, would have involved the expenditure of a considerable sum for the erection of an ordinary public school and the subsequent maintenance of two schools within a mile of each other. As at Otorohanga, Matakohe, Maketu, Kirikiri, Port Molyneux, and Colac Bay, to name some of the places where such a change has occurred, the case for the public school, which is by law open to children of the Maori race, appeared in the case of Kawhia irresistible, and the Native school was accordingly handed over to the Education Board. It has since been shown that elsewhere in the Kawhia district there are sufficient Maoris to make the establishment of another Native school desirable, and arrangements for effecting this are now in progress. At the five boarding-schools—St. Stephen's and Te Aute for boys, and Hukarere, St. Joseph's, and the recently established Victoria School, Auckland, for girls—the Government provide scholarships, tenable for two years, for children of predominantly Maori race who pass the Fourth Standard at the Maori village schools. The number of places available for such scholarships is 113, and 100 were occupied at the end of the year. So far as it is possible to find suitable openings, apprenticeships to trades are arranged for boys that prefer such work to the ordinary scholarship. At present there are four apprentices under the Department's care. One boy in the service of the Bailway Department is doing good work at the School of Engineering, Canterbury College. The after-career of the most promising young Maoris is a matter that has received the attention of the Government. The most desirable career for girls to follow, in view of the circumstances of the race, appears to be that of nursing, and since 1898 the Department, with the valued co-operation of the Napier Hospital authorities, has had in operation an arrangement for training senior scholars from the two Native girls' schools in Napier. Negotiations for an extension of this arrangement are now in progress. University scholarships are also offered to Maori youths of marked ability, in order that after matriculating from Te Aute College they may take up the study necessary for a profession. Two young men have been studying medicine at Otago University, and one of them, Dr. P. H. Buck, has just'attained the distinction of being the first person of Maori blood to obtain a New Zealand qualification for the medical profession. Other scholarships have been granted in law, and there is one student at present attending lectures in law at Auckland University College. Maori children attending the ordinary public schools, and who pass the Fifth Standard before the age of fifteen, may obtain allowances of £20 a year for two years to enable them to attend higher schools or to enter upon industrial pursuits. There are now five scholars receiving higher education under these conditions. The total expenditure on Native schools for the year was £28,719, which includes £134 paid from Native reserves funds and £136 paid from other funds for Native purposes. Deducting £40 recoveries from various sources, the result, is a net cost of £28,679, as against £26,946 for the year 1902. Included in this sum is expenditure on new buildings and additions, £5,655 ; on secondary education (including boarding-school fees for holders of scholarships from village schools, apprenticeships, hospital-nursing scholarships, technical and University scholarships, and travelling-expenses of scholarship-holders), £2,1.72; and on the model kainga at Pamoana, £444. The staff of the village schools included 76 masters, 19 mistresses in charge, 81 assistants, and 12 sewing-teachers. The masters received salaries ranging from £2K4 2s. Bd. to £94 os. 10d., the headmistresses from £181 4s. sd. to £90 Bs. 9d., the assistants from £50 to £7 35., and the sewing-teachers from £18 15s. to £7. In one school the master and mistress work conjointly, the

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