45%

the promotion if it entails temporary reduction of salary.

Mr. Orchar to take Mr. Crake's place as Second As-

sistant, at the maximum salary payable under the scheme of

Sterling salaries, namely £420 per annum. He has hitherto

been employed on the temporary staff at $2700 with Exchange

Compensation, which with a 1 s. 8 d. dollar represents a total

of $4,860 per annum. Mr. Orchar would suffer loss if he accept-

ed the permanent post on the initial salary of £360, and I

therefore recommend that he should be allowed to draw the

maximum forthwith. He states, however, that he is only willing

F

to accept the appointment at the salary mentioned if he is

paid in dollars at the Exchange Compensation rate. I see no

objection to this course, and recommend that it be adopted.

I may add that Mr. Orchar has given satisfaction as Acting

Second Assistant for about a year. He holds a 1st. class

Engineer's Certificate, and has been Chief Engineer in the

Mercantile Marine. He was in the service of the Hongkong and

Whampoa Dock Company until he joined the Goverment Service

in his present temporary capacity.

3.

As the salaries involved in these recom-

mendations involve several temporary reductions and no increas-

es in expenditure, I have caused them to be inserted in the

Draft Estimates for 1903.

I have the honour to be,

Sir,

Your most obedient

Humble servant,

Herz. Atsabe

Governor, &c..

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