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5. In the case of Chinese schools not under European supervision, the Inspect or will be manager when necessary.

6. The Government will not bind itself to give grants to all schools claiming them under the foregoing conditions, but will be guided by the circumstances of each case, and by the amount of money at its disposal for educational purposes. In all cases where a grant is refused, the reasons for the refusal will be given.

7. The Government will reserve to itself the power to withdraw or reduce grants. In all cases, the reasons for the withdrawal or reduction will be given. All grants are subject to a reduction pro ratâ whenever the total sum otherwise payable exceeds the amount voted for the purpose.

8. One-fourth of the total grant made to a school will be handed to the paid teacher as a personal bonus. Paid assistant-teachers share in this payment in proportion to amount of salary received during the year. In the event of a change of paid teachers or assistant-teachers, each will receive his proportion of the sum thus due. If a paid teacher or assistant-teacher is dismissed, his share of the grant will go to the school.

9. A detailed account, with proper vouchers, of the total income and expen- diture of each school, must be furnished by the manager annually, in the form provided for that purpose.

10. Grants will be made for definite results in the subjects mentioned in the standards hereinafter referred to and no others.

11. These results will be ascertained at the annual examination of the school by the Inspector or by such assistant examiners as the Government may appoint.

12. Assistant examiners will be paid for their asssistance.

13. Schools eligible for grants-in-aid will be-

Class I.-Schools in which a Chinese education is given.

Class II-Schools in which a European education is given in the Chinese

language.

Class III. Schools in which a European education is given in any European

language.

14. The basis of examination will be one hundred daily attendances of no less than four hours each at instruction in the subjects of the several standards, provided that the school shall have met not less than two hundred times in the course of the year.

15. Scholars who have satisfied the foregoing condition will be examined in accordance with the following standards and they may not be withheld from examination without a reasonable excuse. The results of the examination of each scholar will be communicated to the managers.

16. For Schools in Class I. (Schools in which a Chinese education is given.)

STANDARD I.

1. Reading. Two pages of the First Reader used in the school.

2. Repetition. Two pages of the same book.

3. Writing. From dictation, ten common characters in the First Dic-

tation Book used in the school.

4. Optional Subject (Arithmetic).—Notation up to 10,000.

Value of a pass in the ordinary subjects of this standard; three

dollars; in Arithmetic: half a dollar.

1 Reading

STANDARD II.

A passage not exceeding fifty characters in the Second Rea- der used in the school.

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