Government House, Hongkong, 31st December, 1901.
Sir,
EASTERN No. 7.
COLONIAL OFFICE
I have the honour to acknowledge the receipt of your telegram of the 12th instant, in which you informed me that you agreed to the proposed grant to Government Officials of additional Exchange Compensation from the beginning of next year on the conditions laid down in the case of the Straits.
2. In accordance with the instructions contained in your telegram, I have taken steps to inform the Legislative Council of the proposal, and warned them that it might become necessary to raise additional revenue in view of the large anticipated expenditure of the near future. I also informed the Council that the matter was one for the consideration of Unofficial Members only, and that the Officials would neither vote nor take part in the discussion.
3. I enclose a press report of the proceedings, from which you will observe that it was unanimously resolved by the Unofficial Members that the additional Exchange Compensation referred to in your telegram under acknowledgment.
THE RIGHT HONOURABLE
JOSEPH CHAMBERLAIN, M.P.,
&c. &c. &c.
No. 41657.