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discontinued. On the other hand free scholarships for 4 years in each case have been offered to 6 Grant Schools for boys and to 2 Grant Schools for girls, at the Government District Schools and the Belilios School for girls respectively (Table VIII).
5. These scholarships will mean an annual loss in fees of $668. The saving in grants to the two Schools struck off the list amount on last year's basis to $442.
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A saving of expenditure will gradually be effected by the reduction of the number of aided Vernacular Schools. At the same time as the withdrawal of grants will entail closure of the Schools affected, the principle enunciated in paragraph 7 of Mr. Chamberlain's Despatch No.300 of 12th September, 1902, will not be lost sight of and care will be taken that the number of Vernacular Schools is not unduly reduced.
6. Some difficulty attended the lectures inaugurated on the system of visual instruction. It was not found possible to use the lanterns in Queen's College owing to want of suitable accommodation, the large Hall being unavailable owing to the difficulty in darkening