49. This important question will receive my early attention. At present I will only say that I concur generally in the views of the Committee and am in favour of a fixed personal responsibility.
50. With regard to the salary of the Colonial Veterinary Surgeon, which the Committee seems to consider inadequate, I propose, with Your Lordship's approval, to grant Mr. Lann an increase of $600 a year, which should be regarded as including remuneration for his work in connection with the Vaccine Institute.
51. I also consider that Inspector Germain should be granted an allowance of $120 a year for knowledge of Chinese, which enables him to dispense with an Interpreter, an increase which is recommended by the Sanitary Board and endorsed by the Retrenchment Committee.
CHARITABLE ALLOWANCES,
(Report, para. 292.)
52. The claims of the Benevolent Society, which the Committee urges, have not been overlooked by the Government. In many instances, the Government has afforded relief to persons who have been recommended by the Society for assistance, and I consider this a more satisfactory manner of aiding it in its good work than by a grant-in-aid.
MISCELLANEOUS SERVICES.
(Report, para. 224. Evidence, pp. 159, 164.)
53. The Retrenchment Committee is strongly of opinion that no sum should be paid for a Consulting Engineer. At present, Mr. Chadwick receives £300 a year as Consulting Engineer on the subject of water and drainage. Owing to the absence on leave of Mr. Cooper, the Director of Public Works, I have not been able to ascertain his views on this subject, which might be allowed to stand over until the Retrenchment Committee has completed its inquiry into and furnished its report on the Public Works Department. This will be done soon after the return to the Colony of the Director of Public Works in October.
54. With regard to the remarks of the Committee in paragraphs 228 and 229 as to the expenditure of $11,000 for the printing of forms and documents for all departments and the suggestion that as much of this work as possible should be done in the Gaol, I will endeavour to effect economy in the direction indicated, though I am doubtful whether, in view of the economies already effected, the present cost can be reduced and whether the printing of any of the forms in the Gaol would ultimately lead to any saving.
MILITARY EXPENDITURE.
(Report, para. 230.)
55. The Committee points out with regard to the Military Contribution payable by this Colony, viz. £40,000, that, owing to the serious fall in exchange since that amount was fixed in sterling, the cost to the Colony will be very nearly, if not quite, $400,000, or more than one-fifth of its estimated ordinary expenditure, an amount which the Committee, in view of the present state of the revenue, and of the small reduction in the expenditure of the Colony which, after careful enquiry, it has been able to recommend, considers far too high; further, that "as a great part of the Military Expenditure here must be in dollars......it is unfair to fix this Colonial contribution in sterling, as in times of low exchange, it lays an additional tax on the Colony and unduly benefits the Imperial Exchequer." The Committee urges that this matter should be again brought to the notice of the Home Government with a view to securing a reduction in the amount now claimed.
56. I have already brought this question of the Military Contribution to the notice of Your Lordship (see correspondence noted in the margin) and have repeatedly pointed out the necessity of its being reconsidered in view of the fall in exchange. In my despatch No. 245 of the 23rd December last, I informed Your Lordship that the Unofficial Members had urged that an endeavour should be made to obtain the fixing of the Military Contribution payable by the Colony at a stated number of dollars; that they had represented with much force "that apart from the gravity of the burden imposed on its resources, the Colony is subject to the serious disadvantage of being unable to forecast its liabilities by reason of the contribution being fixed in sterling, while the variations in exchange prevent the estimation with any approach to accuracy of the equivalent in dollars," and it was contended that if some such inconvenience must necessarily fall on one of the parties to the transaction, it ought in common fairness to fall on the one that receives the contribution and not the one that has to find the money and make the payment," and I stated that I should be extremely glad if Your Lordship were able to induce the Treasury and the War Office to meet the wishes of the Unofficial Members." In reply to my despatch, Your Lordship informed me in your despatch No. 35 of the 12th March last that the question of the Military Contribution was under the consideration of Her Majesty's Government, the period for which it was fixed having expired, and that you hoped before long to acquaint me with the decision arrived at.
57. I have nothing to add to the numerous representations I have already made on this subject, except to state that I see no reason to change the views I have already laid before Your Lordship and to express a hope that, in view of the reduction in the Military Contribution, which has been made in the case of the Straits Settlements, my recommendations, which have the support of the Unofficial Members and of the Retrenchment Committee, may result in similar treatment being accorded to this Colony.
EXCHANGE COMPENSATION.
(Report, paras. 243-245.)
58. The Committee, in view of the fall in the value of the dollar, which has so greatly affected the salaries of officers appointed from home, recommends that, so soon as the finances of the Colony will permit of it, the scale recently offered by Your Lordship to the Civil Service of the Straits Settlements should be extended to the Civil Service of Hongkong. According to that scale, I understand Civil Servants who are domiciled in the United Kingdom and other gold-using countries, including the Governor, are to be paid when on leave 3/4 to the dollar and are in lieu to receive, while on active service, an allowance so as to make up half their salary to the rate of 3/4 to the dollar.
59. In your Despatch No. 152 of the 25th September last, Your Lordship made a conditional offer to the Hongkong Civil Service of 3/- to the dollar for half salary and for leave pay. This offer, which would have involved an increased expenditure of $94,000, 7/8ths of the members of the service declined to accept.
60. In your telegram of the 1st March last, Your Lordship instructed me to let officers of the Civil Service know that your offer contained in your despatch No. 152 of the 25th September was still open to each individually for final acceptance or rejection. In accordance with that instruction, the wishes of the officers concerned were ascertained, with the result that, of the 253 officers in question with salaries aggregating $378,744, 197 with salaries aggregating $251,597 declined to accept the offer, while 46 with salaries aggregating $95,301 accepted it, and 10 with salaries aggregating $31,816 were absent on leave.