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experience of similar work in the Royal Engineers, were obtained and, in view of the recommendation of the Commission, have been retained since Mr. Dougherty's return. I strongly recommend that he be appointed permanently at a salary of $1,300 per annum, with Exchange Compensation at the rate of $4 to the dollar on the full amount, and travelling allowances of $270. I also recommend that the appointment on those terms should date from the 1st January last.

Overseer for Waterworks. It is essential that a good man with experience in the supervision of waterworks and having some knowledge of pumping machinery should be appointed. The salary I would recommend is $180 and $870 travelling allowance, no quarters or other allowance.

The only remaining appointment is that of a superintendent clerk to take charge of the Water Accounts. I recommend that a qualified officer be obtained from England at a salary of £350 per annum with travelling allowance of $188. He will have to supervise and be responsible for the preparation of all accounts in connection with the supply of water or laying house service, etc., the checking of all cash books and maintaining of all statistical records in connection with waterworks. He will also have to supervise the paying of the men employed in connection with the workshop etc. and should therefore be required to give security to the extent of say $1,000.

I have etc. (Signed) E. Chatham, Director of Public Works.

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