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As regards Mr. Shewan's rider I do not think the question need be raised. If it were carried out, and exchange went down much, after fixing salaries afresh. there would be a fresh clamour from officers whose families were in England.

As a rule anyhow officers drawing exchange compensation are not doing the same work as others.

2nd August, 1900.

Enclosure No. 5.

A. M. THOMSON.

Treasurer.

Confidential.

No. 2.

(Acting Postmaster General to Acting Colonial Secretary )

GENERAL POST OFFICE.

HONGKONG, 13th August, 1900.

SIR,In returning the Schedule, shewing the increases of salaries of Officers in the Post Office Department, recommended by the Salaries Commission. which was forwarded to me with your Circular of the 8th instant, (and which subject to one inaccuracy I have found correct in so far as you desired). I would now beg leave most respectfully to make the following remarks thereon in compliance with the wishes of His Excellency the Governor.

2. I have numbered in pencil the Officers whose names appear on the Sche- dule, but before referring to them would like to draw attention to the fact that no mention is made as to the Senior Clerk of the Post Office. The present Officer, as you are aware, was appointed on the 1st July, 1900, at a salary of $120 per month, and $45 house allowance, and under existing conditions he will be entitled after the first year to the annual incremental increases of $120, until the maximum salary of $150 per month is attained. I think, however, that this Officer's case is deserving of consideration with the others, and if I may be allowed, would recommend for consideration, that the salary of Senior Clerk be fixed at $130 per month, rising by the usual annual increments to $160. The house allow- ance, of course, will be drawn by him until such time as the new Post Office is built, and the necessary Quarters for the Senior Clerk provided therein.

3. No. 1.-The Accountant should be a responsible and highly efficient man, and in my opinion, should rank in the Office next to the Senior Clerk. The proposed salary is $160. but I would suggest for consideration, that it should rise by yearly increments to $200 per month, for then it would be the means of keeping a good man in the same place, which is essential.

4. No. 2.-The Superintendent of the Money Order Office should, for the reasons advanced above, likewise be entitled to rise to a maximum salary of $200. The extra allowance mentioned as drawn by this Officer is only drawn so long as he assists in performing the Assistant Postmaster General's duties.

5. No. 3.--The Superintendent of the Registration Office is now entitled (ie. when confirmed by the Secretary of State) to $150 per mouth, and I would recommend that he be granted this salary as from the 1st January, 1900, and that the maximum salary be fixed at $180. I do not see any objection to the withdrawal of the House Allowance of $15 per month, which I may state was recommended when this office was filled by a European, whom the high rentals affected in a manner impossible to the present Superintendent, who is a local man.

6. Nos. 4, 5, 6, 7 and 8.-None of these Officers call for any special remark. 7. No. .-The Deputy Superintendent of the Registration Department, I consider should be entitled to rise to $120 per month by annual increments, of $120. The present officer is a good man and deserves to be encouraged to remain in what is a most important branch of the Department, and besides requires past experience.

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