(recently placed under the Grant-in-Aid Scheme) took up those same special subjects. The Victoria English Schools came out strongest in this respect, gaining the proportionately largest number of passes, in Book-keeping (Turner's Commercial Guide and Hunter's Civil Service Examination Questions), Algebra, Euclid and Physical Geography. St. Joseph's College, also distinguished itself both by the number of higher subjects taken up (adding Findlater's Astronomy to the other subjects), and by the thoroughness in which these subjects were taught. The increase in the expenditure, thus caused, made it necessary to subject all the various Classes of Schools to a uniform reduction of the grants nominally earned. There was no injustice in including under this reduction also the Schools in Class I and III, because both those Classes of Schools, but especially the Chinese Schools in Class I, being comparatively in-expensive Schools, had all along an undue advantage annually earning from three fourths to nine tenths of their actual expenditure, whilst Schools in Class IV generally earn a grant covering, at the best, one fourth or one third of their expenses.
19. The Needle work Examination was conducted on the plan adopted several years ago which now appears to work satisfactorily. Greater strictness has been exercised in 1887 in excluding from examination, after timely previous warning, any kind of needle work which did not come clearly under the denomination of plain sewing. The aim is to encourage domestic and practically useful needle- work rather than decorative and fancy work.
20. Arrangements have been made, during the year 1887, to award the Hongkong Government Scholarship henceforth on the basis of written examinations conducted by the Syndicate of the Univer- sity of Cambridge, the Inspector of Schools acting as Local Presiding Examiner. Opportunity, was also taken of this measure, which is virtually another effect of the introduction in the Colony of the above-mentioned Cambridge Local Examinations, to remodel the conditions of the Hongkong Govern- ment Scholarship in other respects.
21. I enclose the usual Tables, I to XVI, containing the Educational Statistics for the year 1887.
I have the honour to be,
Sir,
Your most obedient Servant,
The Hon. FREDERICK STEWART, LL.D.,
Colonial Secretary.
E. J. EITEL, M.A., PH. D.,
Inspector of Schools.