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taught in any class being compulsory to every boy in that class, but the examination in Grammar is not, as in the Grant-in-Aid System, confined to Analysis Parsing and Definitions, nor in Geography to Map drawing and Definitions; on the contrary searching general questions are set, more after the type of the Oxford and Cambridge Local Examinations; nor must I forget to mention the two papers, translation from and into Chinese, in each class, which prove such a stumbling-block to non- Chinese boys and so ruthlessly handicap them in the race for prizes. The system I adopted on my arrival, and which I have since maintained, is that to pass in each subject a boy must obtain at least half-marks, and failure in more than half the subjects of his class makes a boy a complete failure. This year there were 15 subjects in the First Class, as opposed to 8 subjects in 1882; therefore this year, a boy required for a bare pass, as much as would have gained him excellent distinction six years ago. If this School had been examined on Grant-in-Aid principles, we could have presented 69 boys in the highest Standard, Standard VI; 41 in Standard V; 102 in Standard IV; 100 in Standard III; 52 in Standard II; and 20 in Standard I; moreover Copy-writing would have been taken into account for 274 boys, instead of merely for the 70 boys at the bottom of the school.
5. The Upper School was examined in a first year's work in Latin, the same paper was set to all three classes, and though the questions were stiff, very creditable answers were obtained. Class I was examined in three books of Euclid; and in Algebra offered Surds, Scales of Notation, &c. up to Har- monical Progression. Class IV passed excellently in Algebra and Euclid.
STAFF.
6. Mr. ARTHUR, Third Master, was transferred to the Magistracy, early in the year. He was a tho- roughly efficient, successful, and popular teacher, able to maintain excellent discipline without any ostentation, and having no need to resort to severity. In the important subject of English Reading and Pronunciation, which, to those not practically engaged in teaching English to foreigners, might appear easy, he was unrivalled. The school was fortunate in obtaining the services of Mr. JAMESON, a graduate of Peterhouse Cambridge, whose engagement at another school happily terminated at the time of Mr. ARTHUR'S transfer. Mr. JAMESON laboured strenuously throughout the year, with what success may be estimated from the fact that only one boy failed, out of the three classes in his charge, which comprised 126 boys. On April 1st Mr. Mox, 3rd Chinese Assistant was transferred to the Registrar General's Office, Mr. Cnü took his place, and Mr. Lo KIT was promoted from Senior Pupil Teacher to be 4th Chinese Assistant. In my report on the requirements of the New School forwarded twelve months ago, I drew special attention to the injury done to the school, by Masters, English and Chinese, leaving on account of dissatisfaction with salaries, and I trust that my suggestions on this head will meet with the approval of the authorities.
7. That the whole Staff deserves credit for the past year's work is evident from the results of Examination given above; but I wish to bear my testimony to the important fact, of which I alone can be cognisant, that in this school, there is no spasmodic cramming at the end of the year, with a view to dazzling effect; but steady uniform work, willingly and cheerfully performed consistently throughout the year. As in the New School a larger amount of responsibility in teaching will fall into the hands of the Chinese Assistants, I desire to draw particular attention to the good results obtained by the four classes V-VIII, which were entrusted to the care of the four Chinese Assistants. The excellent papers, in most instances, done by these boys, in English Grammar, Geography, Dicta- tion and Arithmetic show that there is no ground for apprehension, that English subjects cannot be adequately taught by Chinese.
8. I have received from Mr. JAMESON, Master in charge of the Preparatory School, a very favour- able report of the work done by the six Articled Pupil Teachers. This is very satisfactory, and marred alone by the fact, that one of the Pupil Teachers gave evidence of persistent neglect of his First Class studies, which culminated, as might naturally be expected in a pass, which can only be viewed as discreditable.
CAMBRIDGE LOCAL EXAMINATION.
9. The six candidates who entered for the Cambridge Local Examination in 1886 acquitted them- selves well. The Senior candidate passed in Arithmetic, English Grammar, Composition, and History, Geography, Euclid, and Algebra, but failed in Scripture. As a Chinese, he had natural difficulty with this subject, but his experience has led him to devote more attention to it for the late examination. Of the five Juniors, HowARD and MADAR obtained certificates and have therefore the distinction of being the first Hongkong boys to obtain that honour; two others WONG FAN and WONG PING failed only in History and Geography, or it may be in only one of these as particulars were not given. The remain- ing boy was incapacitated by fever. That the boys themselves considered this result encouraging is evident from the fact, that they all entered for the late examination; MADAR abandoned the project only on leaving school, and five new boys swelled the number. In October last the Colonial Secretary, Hon. F. STEWART, LL.D., presented the parchments to the two successful candidates, for it seemed specially appropriate that the late Headmaster should perform in his old school a ceremony, that occurred for the first and last time, and which will prove a prominent link between this school and the new college.