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of the Rev. Dr. CHALMERS, has of late years been taking an increasingly prominent position in the educational movement of the Colony, there being at the present day as many as 32 Schools under the charge of Dr. CHALMERS, assisted by a Lady manager Miss DAVIES, 18 of those Schools being Girls Schools. In all the Grant-in-Aid Schools the tendency, remarked upon in former Reports, to develop the standard of instruction in the direction of secondary education has steadily continued.

The cry for a seventh standard accordingly becomes louder every year. It was my intention to make a recommendation to the Government in the course of the year to extend the scope of the Grant-in-Aid Scheme by adding a seventh standard in the case of Schools of Classes III. and IV. (giving a European education) and revising the value of passes, besides adding a seventh standard, in the case of Schools in Class I. (giving a Chinese education). But the measure involves as much financial as educational considerations, and under present circumstances, when the expansion of the elementary basis of our educational structure makes such pressing claims upon the financial resources of the Government. I deem it more urgent to continue enlarging our foundations than to build at the top, lest we be providing for the educational needs of the few to the neglect of the crying necessities of the many. The measure will have to be postponed therefore for a short time, but it will receive due attention as soon as there is a prospect of the necessary financial means being forthcoming.

The annual examinations proved satisfactorily that our Chinese as well as our English Schools are making steady progress in improving from year to year their methods and organization. The steady increase of special subjects is also a feature indicating the general vigour pervading the English teaching Schools. Special mention must be made of the Victoria English Schools as a whole and particularly of the Girls Division which has of late been taking a foremost place, so far as examination results and general thoroughness of its work is concerned, among the Girls Schools of the Colony. St. Joseph's College and the Diocesan School also continue to distinguish themselves by the alacrity and success with which they have responded to the call of the Colony for a distinctly commercial education, and by the great attention they bestow on the subjects trenching upon a secondary education in their special classes of scholars who have passed beyond the sixth standard of the Grant-in-Aid Scheme. I would specially recommend to those two Schools as well as to the Victoria English Schools, High School and St. Paul's College School to aim at the introduction of evening continuation classes for the particular benefit of former scholars who have left school but feel the need of further instruction in the rudiments of secondary, technical or scientific instruction. The Italian Convent, finally, deserves special commendation for the praiseworthy efforts made by the Sisters to develop the taste for drawing, painting and music among the boys and girls of the Colony by scientifically graded instruction in these subjects.

16. OXFORD LOCAL EXAMINATIONS.-The results of the Oxford Local Examination, held in Hongkong in July, 1891, were as follow:-I. Junior Division.-Honours List, none. Pass List: Diocesan School, 3 passes; St. Joseph's College, 2 passes; Victoria College, 1 pass. Candidates who, having exceeded the age of 16 years, satisfied the Examiners :-Diocesan School, 3 passes; Victoria College, 2 passes; St. Joseph's College, 1 pass. Successful candidates who obtained distinction:- Diocesan School, 2 in religious knowledge. Details of examination results of Junior Division:- presented, 36; examined, 31; passed in preliminary subjects, 23; passed in religious knowledge, fully 6, partly 2; passed in English, fully (not including Shakespeare) 9, partly 6; passed in English, including Shakespeare, 13; passed in mathematics, 21; passed in drawing, 3. Total of certificates issued, 6. Total of pass certificates issued to candidates who had exceeded the limit of age, 6. II. Senior Division.-Honours List, none. Pass List:-St. Joseph's College, 3 passes; Diocesan School, 2 passes; Victoria College, 1 pass. Successful candidates who obtained distinction :-Diocesan School, 1 in English. Details of examination results of Senior Division:-presented 6; examined, 6; passed in preliminary subjects, 6; passed in religious knowledge, 2; passed in English, 6; passed in French, 1; passed in mathematics, 6; passed in drawing, 3. Total of certificates issued, 6. The foregoing results may be summarized thus:-Diocesan School, 8 passes and 3 distinctions; St. Joseph's College, 6 passes; Victoria College, 4 passes.

17. BELILIOS MEDAL AND PRIZE EXAMINATIONS.-The usual competitive examinations for Belilios Medals and Prizes were held at the City Hall on 22nd and 23rd December, 1891. Twenty- nine scholars of seven different local Schools took part in the competition. In the Boys Division (Composition on a subject of commercial Geography, Algebra, Mensuration and Book-keeping) St. Joseph's College gained the 1st, 3rd and 4th prizes, and the Diocesan School the 2nd and 5th prizes. In the Girls English Division (Composition, History and Physical Geography) the Victoria English School took the 1st, 2nd and 3rd prizes. In the Girls Chinese Division (Composition, Translation and Arithmetic) the Victoria Home and Orphanage School took the 1st and 4th prizes and the Basel Mission School the 2nd and 3rd prizes.

18. PHYSICAL TRAINING.-Physical drill, in accordance with the system adopted in all British Army Schools, was introduced in Hongkong in spring, 1891. The Government provided the salary of a Drill Instructor whose services were placed at the disposal of every School in the Colony. Ten Public Schools and 1 Private School (3 of the number being Girls Schools) availed themselves of the offer, and physical drill quickly became a very popular institution among Chinese as well as European scholars, and at two public prize-givings (Diocesan School and Victoria English Schools) highly