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the standard of entry or of the point of entry on the scale on the grounds that a career as a shroff is a blind-alley occupation. On the other hand if every member of the clerical grade is liable to be instructed to perform the duties of an assistant cashier, an immediate difficulty will arise in connexion with the provision of security. It may not be possible for the officer selected to find the necessary money or guarantees. We understand that difficulties of this kind have already arisen. It has been suggested as an alternative that Government might take up a fidelity insurance policy or that a Public Officers' Guarantee Fund might be instituted. We understand that fidelity insurance schemes do not operate satisfactorily and a Public Officers Guarantee Fund would mean that all clerical officers would have to contribute regardless of whether or not they were actually handling public funds. We do not consider either of these schemes satisfactory nor do we consider that the provision of security is in itself effective. The security system naturally operates to make it certain that any deliberate defalcations which do occur will be of amounts greater than the security. If remuneration ordinarily is adequate, the greatest deterrent against defalcation is the loss of pension rights. A further deterrent will be the knowledge that Government is determined to take all measures open to it, including extradition proceedings, to bring to court any officer who has misappropriated public funds even though there is little prospect of recovering the money misappropriated. With these considerations in view we recommend that except in the case of purely temporary officers such as the shroffs employed for a short period each year by the District Officer, New Territories, to collect rates, the provision of security should be discontinued.
POLICE DEPARTMENT
89. A well organised, adequately paid and contented Police Force is a pre-requisite to law and order and to good administration and we are of the opinion that a radical revision of terms of service for the whole Force is required. In the first place we consider that the present system of engaging non-gazetted Police officers on a series of five year contracts should be dis- continued. We recommend that the normal period of probation for local non-gazetted Police officers should be two years and for overseas officers both gazetted and non-gazetted three years in view of the necessity of such officers learning Cantonese within that period. A corollary of this recommendation is that the Police Force should be placed on the same terms as regards pensions as other officers in the public service. We consider that the sections of the Police Force Ordinance, 1932, relating to pensions should be repealed and that non-gazetted Police officers be brought under the Pensions Ordinance.
We consider that provisions should be inserted in the Pensions Ordinance to permit non-gazetted Police officers to retire voluntarily at 45 and to permit Government if it so wishes to require such officers to retire at 45 without cause assigned (unless such a provision is included for the whole of the public service). If these alterations are made, we do not consider that non-gazetted Police officers who accept the revised salary scales should be granted more favourable pension fractions than other officers in the public service. It will be noted that under their present pension regulations, non-gazetted Police do not receive any addition to pensionable emoluments in respect of their privilege of free quarters. If our proposals are accepted they will in future receive greatly increased pensionable emoluments which will include an element for rent as well as compensation for the loss of fuel and light allowance. These proposals will make it unnecessary for separate pension regulations to be drawn up for the various contingents in the Force. We consider that all members of the Force on the permanent establishment should be contributors to the Widows' and Orphans' Pension Scheme.
90. In framing our recommendations for salary scales for the rank and file of the Police Force we have considered it essential that the Commissioner of Police should be able to draw upon good material for his recruits and that a reasonable career should be open to the rank and file. The rates of pay proposed should attract officers of higher qualifications than hitherto. We recommend that the ranks of lance corporal and lance sergeant be abolished and that the title sergeant-major be changed to staff sergeant and that of senior sergeant-major to sergeant-major.
91. We recommend that in future all civilian deck staff in the Water Police should be trained as Police and should receive pay according to their appropriate Police rank. Serving officers who are unwilling to undergo training or who are considered unsuitable for training should be given the option of transfer to the Harbour Department. If it is impossible to absorb them into the Harbour Department or other departments employing floating staff, they should be retired on abolition of office. We do not recommend the absorption of engine room staff into the Police Force, but consider that such staff must remain on