No. 201.

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GOVERNMENT HOUSE,

HONGKONG, 4th September, 1894.

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Post.

MY LORD MARQUESS,

With reference to previous correspondence, I have now the honour to forward the Report with enclosures of the Committee appointed to Enquire into the Expenditure of the Colony.

2. Before dealing with the general observations of that report, I consider seriatim the recommendations of the Committee with regard to the various proposals to departments and other items of expenditure.

GOVERNOR AND LEGISLATURE.

(Report, para. 9. Colonial Secretary's letter No. 449 of 30th March, 1894.)

3. The Committee unanimously recommend that the office of Clerk of Councils, the present salary of which is $1,296, should not exist as a separate office and that its duties should be performed by the Assistant Colonial Secretary. I concur in this recommendation, to which effect should be given whenever an opportunity occurs. This would reduce the annual expenditure under the head of Governor and Legislature from $41,339 to $40,043.

COLONIAL SECRETARY'S OFFICE.

(Report, para. 10. Evidence, pp. 47, 57.

Colonial Secretary's letter No. 449 of 30th March, 1894.)

4. Passing over the proposed amalgamation of the offices of Colonial Secretary and Registrar General, which will be dealt with in connection with the Registrar General's Department, I have to point out that the Committee has practically adopted the recommendations of the Colonial Secretary (Sir G. T. M. O'BRIEN), made in his letter to the Committee of the 30th March last, which will, when carried out, effect a maximum saving of $7,204, and a minimum, when the highest scale of salaries is reached, of $4,804. I have on several occasions represented to Your Lordship that the clerical service of this Colony is overpaid. The Retrenchment Committee, by recognition of that fact, which is emphasised in the Colonial Secretary's letter to the Committee, has been able to recommend the adoption of Sir GEORGE O'BRIEN'S suggestions by which considerable reductions will be effected on the occurrence of vacancies not only in the salaries of the clerical staff of the Colonial Secretary's Office, but also in most of the other departments of the Civil Service.

13th July, 1892.

5. I concur generally in all the recommendations made by Sir GEORGE O'BRIEN, which the Committee is of opinion should be adopted as soon as possible. These recommendations include the abolition of the post of Chief Clerk and of the appointment of a competent Assistant Colonial Secretary, who should occupy the post for some time, and who should be adequately remunerated in order to compensate him for loss of acting appointments in other departments. The salary

The Right Honourable

The MARQUESS OF RIPON,

Her Majesty's Principal Secretary of State for the Colonies,

&c..

$6.

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