HONG KONG

Gov/27083

703

Hong Kong

DRAFT.

Sir,

Conf

Sir F.D.Lugard

Mr.

Mr.

MINUTE.

Stubbs 20/8(

Fiddos 2

29 Aug 1907

I have the honour to ack the receipt

of Mr May's confidential despatch of

June 27th in which he advocates a general increase to the sterling salaries

of officers of the Cadet Service in Hong

Kong on the ground that they compare

unfavourably with those drawn by officers

who are in receipt of dollar salaries

with double exchange compensation.

2

Mr. Just.

Mr. Antrobus.

Mr. Cox.

Mr. Lucas.

Sir F. Hopwood.

21

1. The 21.0

The Earl of Elgin.

The sterling

salaries were intended primarily for officers

who entered the service after the

introduction of the sterling scheme,

the object of the new system being to

avoid as far as possible the disadvantages

incident to a fluctuating dollar.

It was not intended that they should

necessarily be equal to the dollar salaries

with double exchange compensation,

drawn by officers already in the service,

and any comparison with those salaries

should be left out of account, the only

question to be considered whether the

salaries paid afford adequate remuneration

for the duties performed. Taking into

consideration the general scale of sal-

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