[10]

NOTES TO ACCOMPANY STERLING SALARY SCHEME.

1.--Officers on dollar salaries in Hongkong will be allowed to join the Sterling Scheme ou transfer to Straits or Mal

States.

2--Continued service on Maximum of a class to count practically towards increment in case of promotion to higher slave 3.--Dollar officers acting in a Sterling post will draw half their own pay and half pay of that post in dollars at proseut rang 4.-Sterling officers will draw half their own pay and half the Sterling pay of the acting appointment.

5.-Aeting officers draw half the initial pay of posts but not so as to suffer loss on that account.

6.-Officers are allowed 6 months after publication, to join the scheme. If they elect to stay on a dollar salary they mus abide by such at present rates during the rest of their service in Hongkoug, and so far as they are concerned the salaries of sil appointments to which they are promoted will continue to be fixed in dollars.

7.--Oilers can join the Sterling scheme at the stage they would have reached if increments had been fixed at rise dates

their respective appointments to their present posts.

S.An example of the effect on contribution to the Widows and Orphaus' Fund is as follows:-

Officers ou $1,200 per annum would pay to Widows and Orphans' Fund $48 per aum.

annum.

At 18 this i per

Officers on £180 (equivalent of above at 3:-) would have to pay £7.4.0 per annum---a difference of £3.4s. Othes would be affected proportionately. The 4% on Sterling salary would be 4 % of the exact amount of dollar paid as full salary.

9.-Officers on dollar salaries who entered the service before 1st July, 1897, get leave pay at 4- and pension at 38

Officers who entered thereafter get 3- for both.

At p

10. The system of rate of exchange for payment of Sterling salaries is not yet fixed by the Secretary of State.

It is suggested that ta sent it is the average from 1st July, two years before, to 30th June of the year before. monthly rate be taken as in the ease of Exchange Compensation.

11.-Officers who are allowed the privilege of occupying Government quarters have no personal claim to such quarte nor will they be allowed after their next promotion or on acceptance of Sterling salary to count the value of ne quarters for peusion purposes. No officer appointed on an original Sterling salary will be allowed to count the value of free quarters for pension purposes.

12.-Officers at present serving under agreements have the uption of coming under the Sterling Scheme and will be requie

to accept Sterling salaries on re-engagement.

COPY.

Enclosure 4.

Hon. Harbour Master,

C.C.

36991

RECO

403

Rest 8 OCT 05

As to the first remark of the Hon. Colonial Secretary in his minute of 21st. August, which, I presume, refers

to paragraph 2 of my letter, I can only reiterate what I then

wrote, and assure you that such was the sense in which, I was

informed, the Sterling Scheme was to be interpreted. Relying on

this information, I, unfortunately, did not read the Scheme

carefully enough to note the discrepancy, and hence acted under

a misapprehension.

2.

As to paragraph 4 of my letter Mr. May's

minute was,

I believe, shewn to me on the 28rd. June, on which

day, although on leave since the 13th. of the same month, I was

in this office for about half an hour, when passing through the

Colony on my way to Japan. You may remember that you sent for me

that day to ask me for my recollections as to the matter refer-

red to in 0.5.0.4858/1903, and my attention was occupied by that,

to the exclusion of everything else, and it was not until I

returned from leave, at the beginning of this month, that I re-

alized, with surprise, what had occurred.

24th. August, 1903.

(Sa.) 8. R. H. Taylor,

Asst. Harbour Master.

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