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a real increase, as exchange compensation would have had to be provided on the dollar salaries; and a simi- lar consideration applies to most, if not all cases where a sterling salary replaces a dollar salary on these estimates. $10,000 is for new furniture for the

new Peak Residence.

Colonial Secretary's Department, increase $17,430.

This is more than accounted for by the allowances for Exchange Compensation, which have been doubled, and moreover were provided under a separate head in former

years.

Audit Department. The increase of $5,800 (over 50%) is due to the inclusion of Exchange Compensation,

and the fall in exchange. From 39115 it seems that an addition of about $300 (probably more) is necessary.

Treasury. Increase $14,961. About $11,000 is

Exchange Compensation. There is also a vote of $2,000

for "numbering houses in the New Territory":

Post Office, increase $17,700 (The surplus on the

working of the Post Office for 1903 is estimated at $77,185).

The "allowances for extra work" are very

mysterious. Apparently they are not new they were

formerly paid under "Other Charges",

each is

paid under this head to the Assistant Postmaster

General, Accountant, Superintendent of Registration

Branch, Senior Clerk, 1st and 2nd Marine Officers, and

the 1st and 2nd Clerks at Shanghai; 130 to the 3rd

Marine Officer, three Assistant Marine Officers and

most clerks. I think it would be as well to ask

whether these are "over-time" allowances, and if so on

what principle they are fixed.

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