“We do not hate the Hindus, but we detest their dogs” 

The conflict between religious groups cannot be reduced to a conflict between Hindus and Muslims. Even the Muslims, who are more open-minded towards Hindus, still hate the Sikhs. Peace would require such drastic changes of view on behalf of all involved that it looks hopeless. 

“Most people have no knowledge of their history. They only live it” 

There is a difference between following in a tradition and knowing the history from which those traditions are derived. The implication is that adhering to a tradition in no way requires the same wisdom that acquiring a working of knowledge of history would. 

“All Indians are quick-tempered. They flair up over trivial things” 

The assumption that anything that angers an Indian is likely to be trivial, may have delayed British intervention in the riots, showing how racial stereotypes can influence policy, as well as personal opinion.