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3. This last mentioned qualification of special experience would be understood to include local experience, and would leave the Government free in special cases to pass over an officer, otherwise well qualified, in favour of a junior in another equally well qualified Bundle having the advantage of local experience, when such was indispensable for a proper performance of the duties of the particular vacant office. Under the proposed system it would in the case of a certain proportion of the cadets, probably be considered desirable to send them in the first instance to study and learn their work at Hong Kong - the two Governments sharing the cost according to the number of vacancies in either Colony.

I am advised that Hong Kong affords greater facilities than the Straits Settlements, for acquiring a knowledge of the Chinese language and custom.

4. I approve Sir Cecil Smith's suggestion that the two services should be made continuous for pension purposes, and I am addressing you in a separate despatch as to the changes to be made in the Pension Regulations for carrying this purpose into effect.

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