Government House; Hongkong, 18th March, 1902.

No. 353

With reference to your Despatch No. 14 of the 10th January last informing me that Messrs. R. A. J. Savage and T. H. Martin had been selected on the recommendation of the Postmaster-General for appointment as Examining Supervisors in the Hongkong Post Office, I have the honour to transmit for your consideration the enclosed copy of letters addressed by them to the Acting Postmaster-General relative to the grant of a house allowance or an increase of salary.

2. It will be observed from these letters that Messrs. Savage and Martin were under the impression that the question of quarters or an allowance in lieu thereof was mentioned to them in the Colonial Office, and that they were told that the matter was one which could be arranged in Hongkong. Though no mention of such privileges, therefore, appears in their Agreements, and though it was never intended by this Government that such privileges should be offered, the applicants state that their expectations with regard to salary in Hongkong have not been realised and that they understood from

THE RIGHT HONOURABLE JOSEPH CHAMBERLAIN, M.P.,

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