It is undesirable to have three classes of officers in the service of Hongkong, viz. (1) Natives, eligible for ordinary clerkships, (2) Englishmen in a few of the higher Clerkships, for whom there will always be difficulty in finding promotion to any higher posts; and (3) Cadets who are sent out for the purpose of filling the higher Offices in the service. The second of these three classes should, if possible, gradually cease to exist.

4. With reference to the question relating to pensions raised in the first part of the Report of the Select Committee of the Leg. Council, Enc. 26 to XCR(68)268 forming Mr. Fleming's despatch of 15th Dec. last, I have to point out that this argument appears to proceed on a misapprehension, since pensions under the existing Minute are based on final pay and not the average pay of the last three years in cases where the retiring...

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