The space between the embryonic rim and the yolk (Pl. 7, fig. 7, _al._) is the alimentary cavity. The roof of this is therefore primitively formed of hypoblast and the floor of yolk. The external opening of this space at the edge of the blastoderm is the exact morphological homologue of the anus of Rusconi, or blastopore of Amphioxus, the Amphibians, &c. The importance of the mode of growth in the embryonic rim depends upon the homology of the cavity between it and the yolk, with the alimentary cavity of Amphioxus and Amphibians. Since this homology exists, the direction of the growth of this cavity ought to be, as it in fact is, the same as in Amphioxus, etc., viz. towards the centre of the germ and original position of the segmentation cavity. Thus though a true invagination is not present as in the other cases, yet this is represented in Elasmobranchii by the continuous conversion of lower layer cells into hypoblast along a line leading towards the centre of the blastoderm. In the parts of the rim adjoining the embryo, the lower layer cells, on becoming continuous with the epiblast cells, assume a columnar form. At the sides of the rim this is not strictly the case, and the lower layer cells retain their rounded form, though quite continuous with the epiblast cells. One curious feature of the layer of epiblast in these lateral parts of the rim is the great thickness it acquires before being reflected and becoming continuous with the hypoblast (Pl. 7, fig. 8_c_). In the vicinity of the point of reflection there is often a rather large formation of cells around the nuclei of the yolk. The cells formed here no doubt pass into the blastoderm, and become converted into columnar hypoblast cells. In some cases the formation of these cells is very rapid, and they produce quite a projection on the under side of the hypoblast. Such a case is represented in Pl. 7, fig. 8_b_, _n.al_. The cells constituting this mass eventually become converted into the lateral and ventral walls of the alimentary canal. The formation of the mesoblast has progressed rapidly. While many of the lower layer cells become columnar and form the hypoblast, others, between these and the epiblast, remain spherical. The latter do not at once become separated as a layer distinct from the hypoblast, and, at first, are only to be distinguished from them through their different character, vide Plate 7, figs. 6 and 7. They nevertheless constitute the commencing mesoblast. Thus much of the mode of formation of the mesoblast can be easily made out in longitudinal sections, but transverse sections throw still further light upon it.