No. 1416

M

In any further correspondence on this subject, the above number should be quoted,

and

the communication should be

addressed to

"THE Comptroller and Auditor General.”

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13293

Juural

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Sir

EXCHEQUER AND AUDIT DEPARTMENT,

SOMERSET HOUSE,

LONDON, W.C.

788

8 December 1890.

0.0.

23953 REC?

9 DEC 90

I am directed by the Comptroller and Auditor General to acknowledge the receipt of a letter from his Excellency's Secretary, in reply to one from this Department on the subject of the pay of the audit staff at Hong Kong.

As regards the Salary proposed for the Clerk recommended for appointment, Sir R. Herbert observes that it apparently could not be increased without exceeding the total vote of $10,000, if the Auditor's Salary is also to be raised to $4,500 a year, and that the Governor is anxious to avoid any such increase. It is also inferred that His Excellency is disposed to think that Mr. Nicolle's present Salary is insufficient, "especially if, as is understood to be the case, he draws other emoluments in connection with the audit of Imperial accounts."

With regard to the first point, it is not quite understood upon what data the conclusion arrived at is founded.

In a letter from this office dated 4 July last, furnishing Estimates of Audit Expenditure for 1891, it was shown that the proportion of the total sum of $10,000 required for this Colony in the Home Expenditure would be $3,556, which left $6,444 for the expenditure at Hong Kong.

And in the letter of 18th ulto., to which Sir R. Herbert alludes, it was shown that by the adoption of the Salaries proposed, a margin of $1,100 would be left for Contingencies and Clerical Assistance. As regards Contingencies, they were estimated by Mr. Nicolle in a letter of 18th July last at $200, which appears to be borne out by the accounts hitherto received.

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