It is necessary to increase that salary before long, which apparently could not be done without exceeding the total vote of $10,000 assigned to the Audit, now. The Auditor's salary is also to be raised from $7400 to $784500 a year. His Lordship would be anxious to avoid any increase to the present Audit vote, and is moreover disposed to think that W. Nicollés' present salary is notwithstanding sufficiently well paid, taking into account the high rate of living, especially in Hong Kong.

If, as is understood to be the case, he draws other emoluments in connection with the audit of Municipal Accounts, it might not be a ground for increasing W. Nicollés' pay.

As regards the reduction of Staff of the Clerical Office of the Audit at Hong Kong, it is pointed out that two of the clerks of the Dept. have recently been transferred to other departments where the work will be increased under the new arrangements. Ms. Heming explained in the letter from this department of the 6th of Sept. (enclosed).

[17274]

RSWH

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