DRAFT.
201
I should have quoted the case of Ceylon here and the fact that in financial difficulties out of all comparison to any which have befallen Ceylon the increase which had been given a few years before to the higher classes of Civil Service was still maintained.
C.P.L.
This is addressed to Unofficials who would not admit the force of the precedent as conclusive, it is not therefore worth while to burden the despatch with the Ceylon story.
B.F.
Financial position one.
3. I have now again carefully considered the position as presented by the Unofficial Members in their "Memorial", and will proceed to explain the reasons which confirm me in the view that my decision was the right one.
I fully admit that the reduction of salaries of Civil servants is a measure which may be taken under stress of financial necessity but I do not see that the condition of the finances of Hong Kong justifies such an exceptional step.
The Revenue has steadily improved every year for the last nine years, rising from $1,193,000 in 1884 to a sum (omitting exceptional windfalls) of about $2,100,000 in 1892 - a rise of 76%. It is true that the Expenditure has largely increased in the same time, a result, I may observe, due more to the addition to "Services exclusive of Establishments" than to the growth of Establishments, which have only increased by 37% against a rise of 76% in Existing Revenue. But I see nothing in this state of things which cannot be remedied by ordinary measures of prudence and retrenchment, not involving hardship to existing holders of office.