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Maori, 6 - 92 were of mixed race living as Maoris, and 36'12 were of mixed race living as Europeans. The standard classification of pupils of Native schools at the end of the year was —Preparatory classes, 1,046; Standard 1., 739; Standard 11., 706; Standard 111., 515; Standard IV., 407 ; Standard V., 191; Standard VI., 67; passed Standard VI., 22. An event of the year was the retirement of Mr. James H. Pope, who for twenty-four years had held the position of Inspector of Native Schools. The opportunity is here taken of recording the Government's sense of the great value of Mr. Pope's services in a field which his enthusiastic and sympathetic nature, his great ability, and wide knowledge had made particularly his own.

No. 2. The Inspector of Native Schools to the Inspector-General of Schools. Sir,— Wellington, 31st March, 1904. In accordance with instructions, I have the honour herewith to place before you a report on the general condition of the Native schools, and the work done by them during the year 1903. At the end of 1902 there were ninety-nine schools in full working-order. During the course of the year 1903 one new village school has been opened and one side school reopened, and the total number of village schools engaged in active work at the close of 1903 was thus 101. If to this be added the number of denominational schools whose authorities have requested the Department to inspect and examine them —viz., Matata Convent, Putiki Mission, Otaki Convent, and Waerenga-a---hika Mission —it will be seen that primary-school education is afforded to children of Maori race in 105 special schools. If we take into further account the number of the secondary schools —Queen Victoria School, St. Joseph's Convent, and Hukarere School for girls, and St. Stephen's and Te Aute for boys —there are altogether 110 institutions in which instruction is provided for Maori children. This is, of course, exclusive of the number of public schools under the Education Boads at which Maori children attend (Appendix, Table No. 10). Changes: New Schools opened, etc. Puniho School, just outside the precincts of Parihaka District, was opened in June quarter, 1903. The career of this school will be watched with interest. It has already made a very promising beginning, the opening being an imposing function. The school should exercise some influence over the Maori people in the Taranaki District, hitherto a terra incognita to Native-school work. The difficulties experienced by a number of very small children in attending Whakarapa School, Hokianga, led to the opening of a side school at Lower Waihou. The building provided by the Maoris for the purpose was, however, not suitable without considerable improvement, and until these were forthcoming it was decided to close the school. The people, however, remedied the defects, and the school was reopened towards the latter part of the year. Te Pwpuke school, near Kaeo, was denuded of nearly all its children by a general exodus of the parents with their families to the gumfields in the far North. The abundance of gum and the higli prices obtained for it were attractions not to be withstood. It has been decided therefore to close the school for the present. The Chairman, who had done his part to endeavour to stem the tide, agreed that this was the only possible course. As there seems to be no prospect of the school's reopening, the teacher has been transferred, and it is proposed to remove the buildings to Rangiawhia, a place where the Maoris have learned to appreciate the benefits of education in a temporary building of their own. Tapuaeharuru School, which it has been decided to remove to a more suitable and central site, has not been open during the year. The attendance at Te Kotukutuku fell so low towards the end of the year that the teacher was transferred temporarily to another school, and Te Kotukutuku remained closed for the two last quarters. The teachers of Peria and Matihetihe Schools having left the service, those schools were not open during the last quarter, and Wairau School also was not open during part of the last quarter, owing to the illness of the teacher. The Native school at Kawhia was handed over to the Auckland Education Board towards the end of the year. Since this has been done, however, there have been strenuous representations from the leading Maoris of the district that their children should still have a school for themselves. From the attitude of the European members of the community, who also desire separate schools, it is improbable that the Maori children can attend school in common with the European children, and it will perhaps be necessary to erect a new school. The year has been very fruitful of changes in the ranks of our teachers. Mr. C. P. Hill, of Touwai School, who had the honour of being the doyen of the Native-school service, having been engaged in the work since 1874, was retired on the grounds of ill health towards the end of the year. He has laboured faithfully and well during his long service, and carries with him in his well-merited rest the good wishes of the Department. Mr. A. Pinker, of Nuhaka, was also retired, on account of his having reached the age-limit. He has also seen many years' service in the Department, during which time he has carried out his work in a way that has given general satisfaction to the authorities. Mr. T. M. Minchin, Mangamuka, was retired in December. He, too,