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Chief Resident Engineer's

Office,

Kowloon, Canton Railway,

October, 1907.

To The Honourable

The Colonial Secretary,

Sir,

(through the Hon. Colonial

Treasurer and the Local

Auditor.)

Accounts.

I have the honour to lay before you the decisions arrived at with regard to appointments and contracts at a meeting held in the Treasury on 30th October, 1907, at which the Honourable the Colonial Treasurer, the Local Auditor and myself were present.

It was not thought necessary to wait for the arrival of the Railway Accountant as the matter for discussion did not affect him in any way.

The following were mutually agreed on between the parties concerned, as giving requisite power to the Chief Resident Engineer, as well as sufficient control of the Local Auditor on behalf of the Government of Hongkong.

1st. That the Chief Resident Engineer has power to appoint and give increases of salary to indoor and outdoor monthly paid staff up to and including a salary of $100 per month.

2nd. That the Chief Resident Engineer sends monthly to the Colonial Secretary's Office, a list of all such staff appointed, and increases of pay for sanction and transmission to the Local Auditor.

3rd. That the Chief Resident Engineer has power to appoint and give increases of salary to men on salaries over $100 per month only pending the sanction obtained from the Colonial Secretary's Office. These appointments must be sanctioned individually as soon as possible, and must be also included in the list of staff.

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