I think that this is a question of which the consideration must be postponed until we get draft estimates. Competent people will have to agree eventually.

1. I do not believe that anyone but Mr. Lockhart can adequately work there in the departments and if the combination is retained it should not be looked upon as permanent.

2. The Colonial Secretaryship of Hong Kong is not as important as that of the Straits Settlements and should not be paid so highly in permanence.

3. I should answer that until the Estimates for next year are under consideration Mr. Chamberlain is hardly prepared to give an immediate increase.

I should give it as a personal allowance to Mr. Lockhart while holding both Offices. There is, I think, good ground for this, if we increase the salary of the Colonial Secretaryship I fear that in a short time we shall separate the Registrar-General and not be able to reduce the pay of Colonial Secretary.

As Sir H. Blake has favoured incurring so much additional expense, and the financial forecast is so doubtful that really we can do nothing but perpetually postpone any decision on his proposals. I have in my mind that he is likely to complain as Sir W. des Voeux did.

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