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as regards the secular instruction which they contain for the purposes of the Standards.

(e). The style of hand writing but a bold round hand is recommended for Europeau writing.

(/). The stipulations of this code, without six months previous notice in the Gazette,

8.- Grants will be subject to cumulative reduction of five per cent on the whole sum gained by a school, in ach case where the Inspector reports defects in:

(a). The teaching.

(b). The accomodation.

(c). The keeping of the school roll.

(A). The organization.

(e). The discipline.

(). The books and apparatus.

Dae regard in all these cases will be had to circum- stances.

4.- A school receiving a grant must be :---

(a). Open at all times to Government inspection. (b). Represented by a Manager distinct from the tea- cher, who will conduct all correspondence with the Go- vernment, sign the Receipt for the grant, and furnish all Returns which the Government may require.

5. In the case of Chinese Schools not under European Supervision, the Inspector will be Manager when

necessary.

6. The Government will not bind itself to give a grant to all Schools claiming them nuder the foregoing condi- tions, but will be guided by the circumstances of each case, and by the amount of money at its dispo- sal for educational purpose. 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. No grant will be withdrawn or materially reduced, until a second examination is held by the examiner assisted by two assessors, the one chosen by the Government, and the other by the Manager.

8. One fourth of the total grant made to a School will be handed to the teacher as a personal payment

9.

A detailed account, with proper vouchers, of the ex- penditure of the remaining three-fourths must be fur- nished by the Manager annually.

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10.-Grants will be made for definite results in secnlar

instruction only.

11. These rosults will be ascertained at the annual exa- nination of the School by the Inspector, or by such examiners as the Governinent may appoint. 12.-Examiners who are not in the service of the Govern-

ment will be paid for their assistance. 13.-Schools eligible for grant-in-aid will be :-

Class 1.-Schools in which a Chinese education is given. Class 2-Schools in which a Chinese education is given

with English in addition.

Class 3.--Schools in which a European education is given

in the Chinese language.

Class 4.---Schools in which a European education is given

in any European language.

Class 5.-Schools in which a European education is given in any European language, with Chinese in addition. 14.--The basis of examination will be two hundred dai- ly attendances of not less than four hours each, at secu- lar instruction, in the course of the year.

15. Children who have satisfied that condition will be

examined in accordance with the standards. Then come the standards which are six.

For Schools in Class 1. the value of a pass in the first standard is two dollars; in the second standard is four dollars with a gradually increase to eight in the sixth stan- dard.

For Schools in Class 2. half-a-dollar more is given, beginning from the second standard.

For schools in Class 3. in the first standard the grant is two, in the second four, in the third six and then gradually rises to nine dollars.

For schools in Class 4. in the first three standards is as in the Class 8. In the fourth standard the grant is eight dollars gradually rising to ten in the sixth.

For schools in Class 5. beginning from standard 2.

half a dollar is added to that of the Class 4.

No capitation grant will be given for the mere atten- dance of scholars below standard 1; and no grant will be made for any subject not specified in the code.

In the Report on the state of the Government Schools There has

in Hongkong we have very good news.

been a large increase of scholars. The village schools aro 29 in number, of these 14 receive aid to the extent of $60 & year each.

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