Hacknologist, and the backidozest, equipment of a suitable. Moreovey in Haboratory, and 'my desf. No. 1008 of the 6th instant I have agreed in principle to the establishment by Government of a school for European children, and my assistance being afforded to the proposed school for the children of Chinese of the upper classes. I have asked for detailed estimates of the cost of these schools; and I have requested you whether it might be possible to effect some saving in other educational votes in consequence of their establishment. It is not, however, desirable to delay the forming of these institutions any longer than is necessary; therefore some initial outlay may be incurred on this account during the next financial year.

MINUTE.

Antrobus, Onslow. Lucas. Graham. Ommanney. Chamberlain.

Accordingly, having regard to these various sources of additional expenditure, I telegraphed to you on the 12th instant stating that I should be glad if you could reduce the estimated expenditure by at least $200,000. It is obvious that a large proportion of such reductions, at any rate, must be borne by the

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