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Mr. August, 1907, states that it was not intended that the Sterling Salaries should necessarily be equal to the Dollar Salaries with Double Exchange Compensation. This is undoubtedly the case, because the Secretary of State (C.O.D. Confidential of 16th August, 1901) directed this Government to draw up a Sterling Scheme in which the Sterling Salaries should approximate to the then existing dollar salaries with single compensation. After this scheme had been drawn up the Secretary of State decided to grant double compensation, that is to make all Cadet Salaries sterling salaries. The result was that the Secretary of State in 1902 introduced two Sterling Schemes, a higher one, and a lower one. All the Cadets already in the service, with the exception of Mr. Orue and myself, were allowed to take the higher sterling salaries on the ground that the single compensation half dollar half sterling salaries, which were reproduced in the lower sterling scheme, were not a sufficient remuneration. Orme and myself, being then in the Service, were not allowed a similar choice and in common with later Cadets are placed on the lower salaries on the ground that, for us, the lower salaries are sufficient. I may add with regard to myself that holding a permanent appointment with an increment, I am at the present time as Acting Assistant Colonial Secretary drawing £280 per annum less than I should be drawing if I were still a Passed Cadet.
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