78.

bars" at £600 and £900 per annum. The five senior posts carried salaries of £1250 rising by annual increments of £25 to £1500.

An alteration of these salaries affecting the lower half of the time scale was approved by the Secretary of State, (Telegram of 9th July 1928) "subject to review by proposed Salaries Commission". As from 1st January, 1929, therefore, the initial salary of an Unpassed Cadet became £375 per annum rising to £400 on passing his second ex- amination and to £440 on passing his final examination in Chinese; thereafter rising by nine annual increments of £40 and 8 annual increments of £50 to £1,200 per annum. The two scales coincide on and after the 12th year of service at the salary of £800.

39. We understand that considerable difficulty has been experienced latterly in obtaining suitable recruits in England for the Cadet Service. In the Malayan Salaries Commission Report (1920) at p.35. attention is called to the difficulties experienced by the Malayan Government in obtaining recruits for its cadet service, and to the fact that the service under the Government of Hong Kong was being given clear preference over that of Malaya presumably as the result of better financial terms offered by the former Government. In the last two or three years this preference has been transferred to Malaya, and it is now the Government of Hong Kong which finds it difficult to obtain recruits for its Cadet service. Only two Cadets were selected from the Candidates at the 1926 examination although we understand three posts were offered, and only two on the results of the 1927 examination although provision for four new cadets was consi- dered to be the minimum necessary. In 1928 six appointments were made, probably, as a result of the concessions granted by the revision of the time scale and the addition of the percentage increase to salaries.

40. We have carefully considered the salaries paid in the Cadet Services of Ceylon and Malaya, and have given careful attention to the consideration that the Cadet Service of Hong Kong is a small one, that the Senior posts to which its members can aspire are not numerous, and that a cadet who selects Hong Kong will in the great majority of cases spend his official life there. But we deprecate strongly any pecuniary competi tion with those Colonies to attract candidates to the Cadet Service of Hong Kong. The efforts of Government should, in our opinion, be directed to the provision of a reason- able salary having regard to the qualifications thought essential; and the experience of British Colonies and Protectorates in West Africa and in East Africa proves conclusive- ly that an ample supply of competent officers is available under a system of selection.

41. We recommend, therefore, that the initial salary of an unpassed Cadet should be £450 per annum, rising to £475 per annum on passing his second examination in Chinese, and to £525 on passing his final examination. His salary should rise thereafter by three annual increments of £50, one increment of £75 and one of £100 (after the sixth year in accordance with the principle laid down in para. 19), and eleven further increments of £50, to £1,400 per annum, with two efficiency bars at £675 and £1,100 per annum.

42. In Class I there are at present 5 posts and this number has remained unaltered since October 1913. In that year there were 26 cadet officers and there are now 36, so that we consider that an increase in the number of Class I posts is justifiable. We recom- mend that the number be increased to 7. An officer is at present promoted to the Class and not to a particular post. We do not, therefore, think it necessary to specify which posts should be included among the 7 Class I appointments. For these posts we recom- mend a scale of £1,500, rising by £50 annually to £1,800 per annum.

3. THE SENIOR CLERICAL & ACCOUNTING. STAFF.

43. In regard to this branch of the service we have been asked to make recom- mendations on subjects not within the terms of reference for our general enquiry, in accordance with instructions received from the Secretary of State for the Colonies. The questions involved can be summarised as follows:-

(i) Whether the grading of the Staff should be on a personal basis or accord-

ing to posts:

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