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demand for a seventh standard in all the three classes of Schools, the principal desiderata recognized by all interested. As the Managers consented to my suggestion that a revision, with these ends in view, should be constructed on the principle that the expenditure of the Government should not be increased by the changes to be made, I communicated to the Managers at the close of the year 1892 the details of a scheme of revision which is likely to reconcile the interests of both the Government and the Managers in a manner which may be expected to result in enlarging the scope of and intensi- fying the educational stimulus afforded by our local Grant-in-Aid Scheme.

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16. LOCAL EXAMINATIONS.-Arrangements were made during the year 1892, both with the Senate of London University and with the College of Preceptors in London, to recognize the Government Offices, Hongkong, as a centre for local examinations in connection with those Examining Bodies. An examination for the teachers' diploma of membership of the College of Preceptors was accordingly held in Hongkong, in July 1892, but the proposed London University Matriculation Examination had to be postponed. The results of the annual Oxford Local Examinations, held in Hongkong in July 1892, were as under :- I. Junior Division.-Honours List, none. Pass List.-Diocesan School, 4 passes; Victoria College, 2 passes; Victoria English School (Girls), 2 passes. Candidates, who, having exceeded the age of 16 years, satisfied the Examiners, Victoria College, 1 pass; High School, 1 pass; Victoria English School (Girls), 1 pass. Successful candidates who obtained distinction, in English, Diocesan School, 1; Victoria English School (Girls), 1. Details of examination results of Junior Division:-presented 22; examined 20; pass in preliminary subjects, 16; passed in religi- ous knowledge, fully 10, partly 2; passed in English, fully 16, partly 4; passed in mathematics, 8; passed in drawing, 6. Total of certificates issued, 10. Total of pass certificates issued to candidates who had exceeded the limit of age, 3. II. Senior Division.-Honours List, none. Pass List, Victoria College, 3; Diocesan School, 2; High School, 1. Successful candidates who obtained distinction, none. Details of examination results of Senior Division:-presented, 7; examined, 7; passed in preliminary subjects, 7; passed in religious knowledge, 4; passed in English, 7; passed in natural science, 6; passed in book-keeping, 2. Total of certificates issued, 6. The foregoing results may be summarized, thus:-Diocesan School, 6 passes and 1 distinction; Victoria College, 6 passes; Victoria English School, 3 passes and 1 distinction; High School, 2 passes.

17. BELILIOS MEDAL AND PRIZE EXAMINATIONS.-At the annual competitive examinations for Belilios Medals and Prizes (December, 1892), 19 scholars of 7 different local Schools took part in the competition. In the Boys' Division, the Diocesan School gained 4 prizes (2nd, 3rd, 4th and 5th). In the Girls' English Division, the Victoria English School took 2 prizes (1st and 3rd), and the Italian Convent 1 prize (2nd). In the Girls' Chinese Division, the Victoria Home and Orphanage School gained the 1st and 2nd, and the Basel Mission School the 3rd and 4th prizes.

18. PHYSICAL TRAINING.-The British Army School drill was continued during the year in 12 local Schools, including 4 Girls Schools. To exhibit to the public the nature and results of this form of physical drill, a public inspection and parade of a select number of boys from 5 Public Schools was held (14th November, 1892) in the presence of His Excellency the Governor, who expressed his appreciation of the results so far achieved.

19. INDUSTRIAL EDUCATION.-Apart from the industrial classes of the Roman Catholic Reform- atery School, the only industrial teaching given in local Schools consists of the needlework instruction given in all the Girls Schools of the Colony and particularly in the Chinese Schools (which form the majority). The embroidery work, taught in the latter Schools, has a distinctly commercial value, highly appreciated particularly by the poorer classes of parents, as it enables the girls, at a compara- tively early age, to contribute towards the support of their families by doing embroidery work for Chinese shops.

20. MEDICAL EDUCATION.-The College of Medicine for Chinese issued, in July 1892, its two first graduates after a five years' training. Though their qualification is not yet recognised by Govern- ment, they are certified by a court of independent examiners to be thoroughly qualified to practice medicine, surgery and midwifery. The officers and lecturers of the College, all of whom give their services gratuitously, are steadily carrying forward their philanthropic work, and have at the present time over a dozen promising lads pursuing the curriculum. The Honourable E. R. BELILIOS's build- ing scheme has not been acted upon up to the present, as his, stipulations regarding endowment have not yet been complied with.

21. SCHOLARSHIPS.-The Government Scholarship for the study of law, medicine or engineering in the United Kingdom (£200 per annum, for 4 years) was competed for, in October 1892, by 5 can- didates (from Victoria College, St. Joseph's College, Diocesan School and High School respectively) and gained by G. A. YVANOVICH, a scholar of St. Joseph's College. This College had never before taken part in these biennial competitions (established in 1884). The next competition (due in 1894) has been postponed. This temporary pause gives time for reconsideration, welcome because the work- ing of this Scholarship has clearly failed to fulfil the precise purposes for which it was established. Although the expenditure involved (£400 per annum) is small in proportion to the means of the Colony, it is serious when viewed in the light of the fact that the aid given by Government to element- ary Schools has so frequently to be subjected to pro rata reductions for want of funds. Neither has this educational prize met with sufficient appreciation on the part of the local Schools or afforded a palpable educational stimulus. None of the Schools, which have had the privilege of competing for this magnificent Scholarship, ever sent up for it more than one or at the utinost two candidates at any